3 Stocks to Buy if You’re Worried About a Stock Market Crash By StockNews
The market has been trending downward for the past three weeks and saw big declines today. Investors are becoming increasingly nervous. Although David Cohne does not believe a crash in the stock market will happen, he believes investors might be able to benefit from stocks like Colgate-Palmolive Company, Quest Diagnostics Incorporated, and W.W. Grainger, Inc. Due to potential ripple effects from a Chinese real-estate company defaulting, market indexes fell by more than 22% today. Add in concerns about recent fiscal measures passing and the infrastructure bill, it is clear that things are not looking good.
Investors shouldn’t be tempted to buy less risky stocks, even though I doubt we’re heading for a crash in the stock market. There are a few reasons I believe safe stocks or those that can be used as defensive stocks are less risky. Beta is the first. The beta value is a measurement of volatility in a portfolio, security or investment relative to the whole market.
A stock with a beta below 1 has the same volatility levels as the entire market. This is why I will only consider stocks that have a beta of 1. A company with positive earnings growth over a long period of time and a POWR Ratings rating of Buy is what I prefer. The three stocks I recommend are Colgate-Palmolive Company, Quest Diagnostics Incorporated, and W.W. Grainger, Inc.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.