If a Stock Market Crash Is Coming, History Shows This Stock Will Be a Brilliant Buy
It can provide some stability during volatile times.
Overview
Although geopolitical tensions have eased and oil prices have fallen, there is still the very real possibility that the U.S. could be headed toward a recession, as some economists have been warning. After all, inflation remains elevated, and that could trigger a slowdown in consumer activity, with a domino effect across much of our economy. We don't know for sure whether that will happen, but it's always a good idea for investors to prepare for such a scenario. Purchasing shares of companies that can perform better than most during recessions and market downturns is a great idea. Johnson & Johnson (NYSE: JNJ) is an excellent choice in that regard. Here is why.
Image source: The Motley Fool.
Johnson & Johnson tends to outperform broader equities during recessions and market downturns. Let's take two examples. First, the 2008 financial crisis, triggered by the collapse of the housing market, impacted the entire economy, including the stock market. That recession lasted about 18 months, from December 2007 to June 2009. Here is how Johnson & Johnson performed throughout it all compared to the S&P 500.
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Originally published at www.fool.com.
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