Possible Recession? 7 Stocks That May Succeed
(FinancialHealth.net) – The Great Recession was the worst financial downturn in 75 years. In 2008, the stock market lost nearly 40% of its value, and institutions like Lehman Brothers filed for bankruptcy. CrashCourse has a great video explaining just how much damage the recession caused:
The devastation didn’t affect every company. Here are seven stocks that thrived in 2008:
- Walmart saw its revenue grow by 7.2%. The stock outperformed the S&P 500 by 58.5%. Walmart also had a return of 20%.
- McDonald’s did well during the recession. Their same-store sales grew by 4% in 2008. The next year, they grew by 3.8%.
- Hasbro, the toy giant, saw its revenue grow for the fourth straight year. The company had a return of 16.8% and outperformed the S&P 500 by 55.3%.
- Automatic Data Processing saw its share price rise 6.61% from 2007 through 2009.
- Dollar Tree outperformed the market by 99.3% and saw a return of 60.8%.
- Amgen, a biotech company, saw its revenue grow 3% and it outperformed the S&P 500 by 62.8%. The company also had a return of 24.3%.
- Ross Stores, the discount clothing retailer, outperformed the market by 56.1% and had a 17.6% return.
It’s important to remember that there isn’t really a “recession-proof” stock. Some stocks may have done well during the last downturn, but that’s no guarantee they’ll fare as well next time. Before you start moving all of your money, speak to your financial advisor. They’re best equipped to come up with a recession investment strategy for you.
~Here’s to Your Financial Health!
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