In preparation for uncertain times, it’s rational to search for stocks that are more stable and reliable when the chaos arrives.
During this search, some stocks can look safe and secure, yet they have hidden issues that put investors at risk.
Still other times, some stocks appear to have many of the right numbers, but they nevertheless fail investors in key ways, like price.
Five stocks are reviewed but only three can be considered anti-crash in a broad sense, and as defined in this article.
I do not have a crystal ball. However, I do know that the stock market as a whole goes up and down. There’s volatility and that’s rarely fun. In fact, it’s rather painful, especially on the downside. In fact, loss aversion tells us that losing is psychologically twice as powerful as winning.
This leads to three quick conclusions. First, it can be a good idea to target individual stocks that have less variation than the market as a whole. After all, as Chuck Carnevale says, it’s a market of stocks not a stock market. Second, some stocks are especially strong during “bad” markets because they hold up especially well. In other words, relatively speaking, some stocks cause investors less pain because they don’t move as much with the market. Third, some stocks are generally more stable because they offer regular cash to investors instead of mere capital gains, or losses. Of course, I’m talking about dividend stocks, but especially dividend growth stocks. I’m quite fond of the Dividend Champions that have increased their dividend every year for the past 25 years, or more.
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