These 3 Stocks Are Safe Bets in the Event of a Market Crash

With so many stocks in the market trading near all-time highs, it is natural to worry about the increased potential for a market crash. While betting on a crash is almost always a fool's errand, it does make sense to have a game plan in place if one happens. As a general rule, market crashes spare almost no one, so the trick is to make sure your stocks go down the least.

Stock market crashes will usually create knock-on effects in the broader economy. If investors lose a good chunk of their portfolios, they are probably not going to be in the mood to spend money on anything. That will lead to a decrease in consumer spending. A drop in consumer spending will negatively affect the gross domestic product, creating a recessionary effect. In response, the Federal Reserve will probably cut interest rates (or perhaps increase the money supply) to stabilize the economy.

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Source Fool.com