Finance
The economy has taken a stall: how can I win money during this period?
Sometimes the economy looks like it's slowing down, but that doesn't mean you can't make money. Here are some stocks that are stall-free.
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There are all sorts of different strategies that people use to try and make money when the economy stalls.
Some people think it is better to invest in a bull market, while others think a bear market is better.
However, there are still some investments that can make you money no matter what the market is doing. These are known as stall-free stocks.
There are a few things that you need to look for when you are trying to find stall-free stocks.
First of all, you want to find a company that has a product or service that people will always need.
This could be something like food or healthcare. You also want to find a company that has a strong financial position. This means that they have a lot of cash.
All and all, we are going to give some examples of stocks you can be taking a look at when the economy is kind of shaky.
Here are some ways to make money during a rece…
Sometimes the economy does go down, but we don't need to go down as well. Here are some ways to make money during a recession.
Lockheed Martin
The national defense is unrelated to the business cycle. When there is no actual conflict, the government may afford to reduce its defense spending.
The escalating tensions in the Taiwan Strait and Russia’s invasion of Ukraine have forced the US House to increase the defense budget this year.
For companies that provide weapons, like Lockheed Martin, this growth is a boon. This year, the stock has outperformed the S&P 500 and the Nasdaq.
Up 23% so far this year. Although the stock has increased, it still trades at 25 times earnings per share.
During the 2008 crisis, Lockheed Martin lost half its value. However, that is because the government slashed the budget for defense. They’re probably going to do the reverse this year.
According to consultancy firm McKinsey, despite inflation and economic challenges, the Department of Defense is anticipated to continue investing in military and aeronautical technology.
Because of this, Lockheed Martin is mostly a good option.
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Dollar General
Businesses that compete on price are essential and stalling-proof. A good example is Dollar General. As families turn to cheap merchants to deal with growing inflation, it should see an increase in foot traffic.
During the 2008 financial crisis, Dollar General wasn’t publicly traded, but its rival Dollar Tree was. With a little drop in between, the stock’s performance from 2007 and 2009 was essentially flat. The situation for Dollar General might be comparable and reliable.
Net sales at Dollar General increased by 4% in the first quarter of 2022. The business actually increased its outlook for the second part of the year. This year, the management projects sales to increase by 10% to 15%. 12% to 14% growth in diluted earnings per share is also anticipated.
The stock has increased by about 7% year to date and is currently valued at just 26 times earnings per share.
Clorox
Another crucial company that is impervious to recessions is Clorox. Regardless of the economy, consumers continue to buy bleach and disinfectant wipes, especially after a significant global pandemic.
During the Great Financial Crisis, Clorox produced 24% earnings growth and 35% dividend increase. In actuality, it has raised dividends each year for the past 45 years. This year’s disappointment is improbable. The most recent quarter saw a 2% increase in the company’s net sales.
The stock is down 17% year to date, but given its recession-resistant business model, it might be less vulnerable than the rest of the market.
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