It's been doing well, perhaps too well, given the state of the economy. Many people are struggling due to inflation and cutting back on expenses. Although the S&P 500 reaching record levels this year may indicate otherwise, there are plenty of reasons investors may want to think twice about simply buying into the rally these days.
Getting out of the market, however, isn't necessarily the best option for risk-averse investors. There are stocks that may be safe investment options, even if the market does end up crashing in the near future. Three stocks that did well during the last two big crashes in 2008 and 2022 include Walmart (NASDAQ:WMT), McDonald's (NYSE:MCD), and Gilead Sciences (NASDAQ:GILD).
Here's how well they did back then, and why they might be safe-haven investments to hang on to right now. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Walmart is the go-to retailer for many consumers. Whether it's loading up on day-to-day essentials such as groceries or making large discretionary purchases, it has just about everything consumers need.
Thus, it's normally going to benefit from a great deal of consistent foot traffic and demand. In 2022, when the S&P 500 declined by more than 19%, Walmart generated total returns (including dividends) that were only slightly negative, but fairly close to 0%. Not a great return, but also not horrific, either.
And in 2008, in the midst of the Great Recession, its total returns were up around 20%. That's incredibly impressive given that the S&P 500 declined by 38% that year. Walmart makes for a solid long-term investment to hang on to.
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