Prediction: A Stock Market Crash Is Coming. Here Are 3 Safe Stocks to Buy Now That Could Help You Protect and Grow Your Wealth.
Investors are on edge. It seems that every day there’s a new risk that threatens to spark a stock market sell-off. Geopolitical turmoil — including conflict in Ukraine and the Middle East — is upending energy markets and igniting fears of prolonged war.
Signs of overspending on artificial intelligence (AI) infrastructure, mounting debt levels among major technology providers, and intensifying competition from foreign rivals have many investors questioning whether the U.S. AI boom is slowing. At the same time, stubbornly high inflation and rising interest rates are heaping further pressure on the U.S. economy.
Missed AI’s “Act 1”? Act 2 Could Be 16x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
This worrisome combination of threats could easily lead to a sudden downturn in stock prices.
Some would say we’re due for a stock market correction. Bear markets — defined as a 20% or more decline in a major stock index such as the S&P 500 (SNPINDEX: ^GSPC) — typically occur every 3.5 to five years. The current bull market turned four years old in October.
Should investors sell their stocks now?
Although history suggests it’s only a matter of time before the next crash, selling now could prove to be a losing strategy. It’s extremely difficult to predict exactly when a bear market will begin — and even harder to foresee when it will end.
So, the best strategy is often to stay invested in stocks, so that you’re positioned to profit from the bull market that has historically always followed.
But it could be smart to pare back risk by investing in companies with defensive business models that can better withstand challenging economic conditions.
In this regard, here are three stalwart stocks that could help you safeguard your wealth.
Safe stock to buy No. 1: Walmart
Difficult times drive people to search for bargains. Walmart (NASDAQ: WMT) has long been where they’re found. Known for its “everyday low prices,” the discount retail leader is set to win more business from value-seeking shoppers.
With nearly 11,000 stores, 280 million customers, and a staggering $735 billion in trailing-12-month revenue, Walmart possesses scale advantages over its smaller competitors. The retail giant’s purchasing power allows it to secure the best deals from its legion of suppliers, and it passes on many of these savings to its customers.
