These 3 Stocks Are Resilient In The Current Bear Market.
Running to safe stocks during economic turbulence is a hedge against severe market losses. Resilient stocks like P&G, JPMorgan Chase, and Caterpillar will give you profits in any economic weather.
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.
2022-05-14 11:10

Safe stocks have long been the haven of many investors when the market becomes bearish. Although they do this to avoid losses, that strategy is short-term. Every savvy investor knows that investing is about grabbing opportunities. As much as there may be high volatility in the market, some sectors or stocks are not bearish. In fact, for some companies, a 5-10 percent dip is just the perfect time to get it because it is certain to rebound the next day or week.
These 3 Stocks Are Resilient In The Current Bear Market.
However, it is better to invest in stocks with good fundamentals instead of weaving in and out of stocks due to market eventualities. These stocks will always make gains in any economic weather because they are resilient. They could be safe stocks, growth stocks, or value stocks. I will highlight three resilient stocks that can help you make gains in any weather.

1- Procter & Gamble (NYSE: PG)
Many investors see P&G as a shelter from the rain. The 6 months-to-date chart shows a 3,4% gain fr investors holding on to P&G. This shows that even with the current volatility, I would still deem it fit to invest in this company.

At a market cap of $392 billion, P&G is a diversified, global company that has delivered dividend growth to shareholders for decades. It has many international brands like Luve, Oral-B, Bounty, and Gain. The company is in the consumer staples sector. It has been outperforming the S&P 500 and other company in the consumer staples sector for years. Last year, it surpassed the S&P by about 16% and its industry by 6%. That is why the stock has its head above water despite the era of high inflation, rising interest rates, and extreme volatility.

One optimism about it is that demand for its products is always positive no matter the market condition. In addition, the company has lots of free cash flow for share buyback programs and raises its dividends. It has been doing this consistently for 65 years. As a result, this is one of the best stocks you can have in a bear market.

2- Caterpillar Inc (NYSE: CAT)
While this stock 6 month-to-date chart shows a 2.25% dip, it's a great dividend stock. This means that if you really would have made a profit in CAT despite the market volatility because you would have been compensated with a dividend payout.

Caterpillar Inc is a company that makes equipment for several sectors, including oil and gas, construction, mining, agriculture, and many other industries. It has high exposure to the global economic trend, making its results flow with the times. I like this company because somehow, it has managed to be fairly stable and no fluctuation in price despite the current state of the market. More so, Caterpillar is known for being a "dividend aristocrat." It has continuously been paying and raising its dividends for the past 27 years.

Caterpillar is a very reliable holding. Presently, its revenue is increasing due to the rising prices of commodities, especially oil. So hold it in your portfolio for enormous gains in these inflation-prone times.

3- JPMorgan Chase & Co. (NYSE: JPM)

The last of our resilient stocks is JPMorgan Chase & Co. JPM is the largest bank in America by market capitalization, with a capitalization of $357.91 billion. Well, going by our 6 month-to-date principle, JPM may not have been included in our list. This is because this stock has traded down by 29% already despite its domination of the banking sector.

This situation is unusual. It has performed poorly this year due to the numerous economic and geopolitical headwinds it faces at a global bank. However, it is a proven fact that bank stocks do well in a rising inflation period. We do not know how long this inflation would last. Therefore, this is the best time to "buy the dip" on the stock.

Its Q1 2022 earnings were slowed down by wage growth. So, once that slows, we'll see the company posting stellar earnings as it has been doing for years. However, I noticed that the market had underappreciated its earning growth. This is because it is now trading at a normalized price-earnings discount of 26.4% with a price-earning ratio of 8.5.

Many Wall Street analysts say the bank has the best CEO in the industry in the person of Damie Jimon. The bank is known for being resilient in times of volatility and recessions. Furthermore, when there are high-interest rates, banks make lots of revenue. So, expect much more from JPM this year. This stock should be in your portfolio. So which stock are you considering holding in this period of high volatility?

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

Published On
2022-05-14 11:10

About the Author
Precious Njoku is a Financial Writer with extensive knowledge about the stock market.

You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

What the heck do we do with NVIDIA (NVDA) now?
NVIDIA could continue higher well into the $400s and I wouldn’t be surprised at all. 
By Mike Sakuraba | 1 week ago

Amazon's Ascent in the AI Era: An Unstoppable Force?
Amazon is set to transform our everyday experiences with AI-powered services, although it must navigate potential regulatory headwinds on its path to dominating the AI race.
By Staff | 2 weeks ago

Will Disney's Big Risk Pay Off?
The Political Tussle That Could Redefine an Entertainment Giant.
By Staff | 2 weeks ago

Musk Stays on as CEO: What This Means for Tesla (TSLA)
Tesla is still on track to be the long-term growth stock that many anticipated a few years ago.
By Mike Sakuraba | 2 weeks ago

Inflation Unraveled, a New Economic Normal
As the economy adjusts to a new normal with higher inflation rates and businesses leveraging their power to raise prices without consumer resistance, both consumers and policy makers must adapt their strategies to navigate the shifting landscape.
By Staff | 2 weeks ago

Is NVIDIA (NVDA) a Buy Ahead of its Earnings?
So with its earnings report on deck, what should we do with NVIDIA’s stock? 
By Mike Sakuraba | 2 weeks ago

PayPal's Roller Coaster Ride
Despite recent downturns, PayPal, equipped with its robust resources, strong brand recognition, and technological adaptability, holds potential for future growth through cryptocurrency, buy-now-pay-later services, business lending, strategic partnerships and acquisitions, especially within developing international markets.
By Staff | 3 weeks ago

2 Stocks To Buy After Earnings Sell Offs
When these stocks sell-off, they can provide one of the best buying opportunities of the year.
By Mike Sakuraba | 3 weeks ago