Traditional crisis portfolio

Probably, a time of great growth is finished. Global markets grew more than 10 years. We could watch big black swan in February 2020. Coronavirus devastates human lives and global economic. During one month markets went down more than 20 per cent.

 

Are we ready for recession?
What should we do in reccesion?

If you want to stay in market, I will present you some defense assets.

Things of daily consumption

People are saving money in recession. They don’t buy expensive and useless things. They alocate money to basic things. The most basic things are: a cup/glass (to drink), toothbrush, toothpaste, the tap (for water), toilets, a clock, a bed.
Look for strong companies that manufacture above mentioned or similar things.
For example:
Johnson & Johnson (JNJ), 3M (MMM)

 

Alcohol and Tobacco

In bad times people will not stop consuming alcohol and tobacco. On the contrary, consuption will increase in bad times.
Look for strong companies in consumer goods sector such as British American Tobacco (BTI), Anheuser-Busch InBev (BUD)

 

Transport infrastructure

The people has to travel. If aircrafts stay on the land, alternative kind of transport will be use. As winner could be rail transport.
There belongs such as Norfolk Southern Corporation (NSC)

 

Dividend aristocrats

In bad times dividend stocks could be the best choice. At this time you can purchase big blue companies cheaper. It is good oportunity now.
Look for strong companies such as AT&T (T), IBM (IBM)

 

Gold

Gold is classic commodity in bad times. Investors move assets to secure positions. Gold is good choise. Buy real gold such as coins, medals, bricks. If you cannot buy real gold, try ETFs such as GLD.

 

 

 


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