The US economy may be in a recession, but experts told The Post that those looking to invest can still turn a profit with low-risk assets.
But which stocks should investors look into during an economic downturn?
Analysts told The Post that blue-chip stocks could be had at a relative bargain.
“Walmart may be the most recession-proof company ever,” Levon Galstyan, an accountant with the Jersey City-based law firm Oak View Law Group, told The Post.
“That’s because the focus of its businesses is on providing consumers with affordable access to necessities like food and personal care products.”
Galstyan said that rising inflation will deter people from shopping at high-end stores, but Walmart is an attractive option because there will always be demand for bare necessities.
“People frequently need to buy things like bread, toothpaste, pet food, and other basics,” he said.
Walmart and Marlboros
“And whether they’re visiting the store or shopping on Walmart’s developing e-commerce website, they might also purchase some additional luxuries.”
Walmart shares were trading up by 0.82% as of 12:06 p.m. Eastern time on Friday.
Galstyan also recommends Marlboro’s parent company, Altria, which is a surprise in light of statistics which show that fewer Americans are smoking.
“Altria is the perfect stock to hold throughout a recession due to its stability,” he said.
Galstyan said that Altria is an attractive option because it has “continually increased its pricing, cut costs, and repurchased shares to increase its earnings per share.”
Altria was trading at around $44 per share on Friday. In the summer of 2017, it traded at an all-time high of more than $76 per share.
Kraft Heinz, CVS and Coca-Cola
Robert R. Johnson, the CEO of New York City-based Economic Index Associates, thinks investors should opt for “defensive sectors whose firms are less dependent upon the business cycle.”
“Food and beverages, household and personal care products, energy, and utilities are noncyclical or defensive in nature,” Johnson told The Post.
“People need to eat, brush their teeth, and heat their homes whether the economy is strong or weak.”
That’s why he is recommending defensive firms such as Procter & Gamble — the maker of Tide and Pampers — as well as Kraft Heinz, United Health Group, Coca Cola, and CVS Health.
Josh Answers, the host of the online show The Trading Fraternity, told The Post that he favors “blue chip tech stocks that are offering some great discounts right now.”
Netflix, Airbnb and pharma
He mentioned Airbnb, Netflix, and the pharmaceutical research firm AbbVie.
“Just make sure you scale in little by little and don’t fire all your ammo at once,” he said.
“During times of inflation, utility stocks become a great investment option,” Riggs Eckelberry, the founder and CEO of Florida-based OriginClear, told The Post.
“They are relatively low risk and remain steady regardless of the current economy or market cycle, making them desirable for any well-diversified portfolio.”
Eckelberry said he would take a look at water-related stocks such as Canadian-based Stantec Inc as well as Pentair.
[Written in collaboration with other media outlets with information from the following sources]
