As the hawkish policy was brought to life and interest rates started rising up, almost all risk-on assets suffered. That is why investors look for less volatile assets during recessions. Let’s look at stocks with lower volatility with a potential for profit despite the current crisis.
While there are stocks that may avoid a brutal fall, like technological stocks, it is essential to note that even the stocks mentioned in this article are not entirely ‘recession-proof,’ but they survived the last two recessions. The risk is everywhere, but these stocks have the lowest risk out of all, with a potential to profit in the future because they always returned and created a new all-time high.
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Moreover, they pay out yearly dividends that could be well appreciated during a crisis. It is also recommended not to buy in with whole capital right away but rather prepare to buy lower in the upcoming months or regularly buy in the span of the next few months.
1. Coca-Cola (KO)
There’s no need to introduce this company. Coca-Cola is one the biggest beverage makers in the world with a long history. This firm is actually one of the most favorite ones by Warren Buffett, who has held KO stocks for decades. People will always need to drink beverages no matter how big the recession is.
KO shares have been available on the stock market for decades while delivering consistent returns over time. The stock dropped with the tech bubble in 2001, the housing crisis in 2008, and the pandemic shock in 2020, but it always returned and created a new all-time high. The worst drops Coca-Cola in the last few decades were somewhere between 30% to 40%, while tech stocks could fall by 90% or even more.