The stock market has been shaken in recent days by an
escalation of the trade battle with China, as well as a Federal Reserve move to
lower benchmark interest rates for the first time since 2008 – but not by as
much as some on Wall Street hoped. But even after heavy selling, Standard &
Poor’s 500-stock index remains just a few percent off all-time highs.
Is this the start of a long-awaited stock market correction?
Possibly. But rather than trying to gauge exactly when a correction is coming
or what will spark it, a better plan is to simply prepare. That is, you can
shift the composition of your portfolio so it can better weather a storm – but
still profit as long as the bull keeps running.
A more defensive posture does have drawbacks; nothing is
free. The biggest problem is being underweight the stocks that are still
driving the market higher. But for investors who do think a correction is
coming and don’t want to play the losing game of trying to time the market,
we’ve asked a group of investment managers and other experts which stocks they
expect to hold up should the market pull back.
Here are 13 of the best stocks to buy to ride out a stock
market correction. Most of these revolve around the idea of investing in
high-quality companies that have good cash flows and business health, boasting
pricing power and stable customer demand. This includes consumer staples stocks
that sell products and services that people cannot live without. A couple will
help raise your exposure to gold, which is emerging from a multiyear slumber.
Thank you :)
ReplyDeleteLots of traditional firms that continues doing their business as usual when the correction happens.