Things You'll Need:
- Brokerage account
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Step 1
Economic times are hard right now. Stocks have recently been in a free fall due to greedy and unscrupulous corporate executives. But, there are some stocks that have not taken a huge hit. There are even stocks that have made gains in the last year. These companies are called defensive stocks because they provide stable earnings and consistent dividends thru any down market. Below is a list of the different types you can use to guard your portfolio.
Buy Utilities: People tend to pay their water and electric bills during bad markets. They obviously want to take showers and not live in the dark. -
Step 2
Invest in Food: The best companies to invest in are those that make food grocery. Basically the things you see in your refrigerator every day. Basic stuff like bread, milk, cheese, can goods, Etc. Because people will still need to buy these products, no matter where the market is.
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Step 3
Invest in Alcohol: Despite what people think, alcohol and beer sales usually stay stable during recessionary periods. I guess people can't put down the bottle.
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Step 4
Tobacco products: How many chain cigarette smokers you know that are going to stop or cut back smoking because of the economy?
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Step 5
Powerful International companies: Make sure to buy these companies in tough markets
McDonald's
Coke
Walmart
Proctor & Gamble -
Step 6
Last use some of these stocks to diversify your portfolio the next time a bear market is eminent.
Comments
tracysmith159 said
on 6/13/2009 Interesting information on Investing in safe stock shares.
magnadea said
on 5/24/2009 Good pointers, thanks! 5*
kossmore said
on 5/22/2009 Good suggestions.
dalady said
on 5/22/2009 Solid advice 5*
delawaregeek said
on 5/21/2009 Good information for recession-proof industries. Thanks for the advice!