What are Good Defensive Stocks to Invest In?
In today’s difficult financial climate, do you believe there are any good stocks to buy? Of course there are! Regardless of the market we are now in, whether it’s a bear market or bull market, money can be made in the stock market. Here are some ideas for stock investments in the new year, as this chaotic and turbulent year comes to an end.
At this time, many analysts and other experts are recommending that good stocks to invest in are defensive stocks. You should consider this option before you apply for a mastercard credit card to protect you in the event of falling on hard times. Things like consumer staples, utilities and healthcare would be considered part of the defensive sector. Numerous analysts are also recommending that people invest in big multinational companies that have a well known presence in the emerging markets. This will afford you the opportunity to leverage the tremendous growth in developing economies but also provide you with the financial strength you need to endure any downturns.
Defensive Stocks – Strong Now, Strong Later
Johnson & Johnson (JNJ) – In an industry that is constantly increasing in size, they are the biggest worldwide health care company. They are known for well established brands of consumer products worldwide. Additionally, their business in medical technology is robust. The world’s population is getting progressively older with increasing numbers of the elderly, a large and growing middle class in the emerging markets and simply, the influence of the health care industry in general.
Exxon Mobil (XOM) – This is another promising company that indicates positives at every turn.
On the US stock market, this is the largest company by market cap. They are therefore, an asset that would provide refuge when the economy is failing. Along with their defensive qualities, this company has strong growth prospects for the future.
Growth Stocks – Speculation Play
Google (GOOG) – Over the last 10 years, this stock has been increasing dramatically. There seems to be no stopping them. Their market share is increasing and so is the market itself on the fundamental side. The company has recently established their social networking space and released Google+.
Apple Inc (AAPL) – Another technology stock that shows strong potential for growth. The stock rises rapidly with the release of each new devise such as the iPhone or iPod. I cannot imagine them changing their outlook any time in the near future as they have the glitz and glamour feature.
Cyclical Stocks – Stocks to Buy in Good Times
During times of economic increase, cyclical stocks are the ones in which you want to invest. Just as a recession is transitioning into a sustained recovery, is the most opportune time to invest into these kinds of stock.
Ford (F) – I am impressed with this company for a number of reasons. They were one of the few that did not require a bailout from the government and therefore, earned my respect. They persevered without outside influence or support and survived. They are currently thriving.
JC Penny (JCP) – This is referred to as a consumer discretionary stock. During healthy economic periods, these companies do well as they provide goods and services that are not entirely necessary for people to survive.