These 3 Stocks Are Safe Bets in the Event of a Market Crash
Between the Russia-Ukraine war, the highest inflation to hit the U.S. in 40 years (7.9%), and ongoing supply chain issues affecting a broad array of industries, investors have been feeling a high degree of economic uncertainty over the last few months. As a result, the stock market has been quite volatile. The Federal Reserve has pledged to raise interest rates from their current rock-bottom lows to curb inflation, but it will have to perform a delicate balancing act to ensure that those moves don't trigger a recession. Meanwhile, technology stocks, in particular, have sold off sharply, and tech-heavy the Nasdaq Composite Index has entered bear market territory.
It's unnerving to see the value of your portfolio plummet. That's why, during crashes and downturns, it's a good strategy to hold investments in companies that have both proven competitive edges and resilient business models. Strong and recognizable brands also help businesses to retain their momentum during rough periods. And if they are reliable dividend payers, even better -- that's a signal of healthy, steady cash flow generation, and those payouts can tide investors through challenging times in the market.
These three stocks offer all of those characteristics and should make for safe bets to hold during a market downturn.
Source Fool.com
