The markets remain volatile and in times of crisis many investors look for stable investments. But which sectors and companies have historically proven to be particularly resilient or could even benefit?
Consumer staples - products that will always be needed
Companies such as Procter & Gamble $PG (-0,76%) Nestlé $NESN (+2,09%) or Coca-Cola $KO (+0,82%) benefit from their strong market position and stable cash flows. People are always buying household products, food and beverages.
Healthcare sector - crisis-resistant growth stocks
Companies such as Johnson & Johnson $JNJ (+1,02%) , Eli Lilly $LLY (-3,56%) or Novo Nordisk $NOVO B (-2,25%) supply medicines and treatments that are in demand regardless of the economic situation. There is a particular focus on the boom in diabetes and obesity therapies.
Providers - Stable income through basic care
Companies such as NextEra Energy $NEE (+0,71%) Duke Energy $DUK (+1,43%) or Southern Company $SO (+0,76%) are benefiting from the constant demand for electricity and water. Renewable energies are also playing an increasingly important role.
Commodities & gold - hedging against inflation & uncertainty
Gold mining companies such as Barrick Gold $ABX (-1,82%) or Newmont $NEM (-2,32%) often benefit in times of economic uncertainty, as investors flee to gold as protection against crises.
Defense & Armaments - Profiteers of geopolitical tensions
Rising military spending worldwide makes companies such as Lockheed Martin $LMT (+0,01%) or Northrop Grumman $NOC (-1,11%) into potential winners of long-term conflicts and global uncertainties.
This is just a small selection of companies. But hopefully it gives a small insight into the interesting crisis-proof sectors.
Defensive investors could now focus on consumer staples, healthcare and utilities for long-term stability. Opportunity-oriented investors could look to commodities, gold or defense if geopolitical tensions continue to rise.
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