Buying These 2 Stocks Is a Good Way to Hedge Against a Market Crash
Outsized inflation and rapidly rising interest rates have kept investors' nerves on edge this year, with the market down and many concerned about an even bigger crash in stock prices. One excellent way to hedge against any potential market crash is to own high-quality, blue-chip stocks that keep delivering no matter what the market does.
Costco Wholesale (NASDAQ: COST) and Progressive (NYSE: PGR) are two companies that fit this description. When economic times get tough, these companies continue to see demand for their products. Here's why these two stellar companies are a good way to hedge against any market crash that might come along.
During tough economic times, consumers tend to turn to cheaper alternatives as they keep a close eye on their spending and cut costs anywhere they can. Costco operates a membership-only warehouse, providing customers with cost savings via its bulk goods offerings. Because of this, Costco can do well in a weakening macro environment marred by persistent inflationary pressures.
Source Fool.com
