2 Stocks to Put in Your Cupboard
During times like this, when the economy slows and discretionary spending dries up, there are still some products that people keep on buying. And that is great news for two consumer-staple manufacturers: Procter & Gamble (PG) and Johnson & Johnson (JNJ).
Don’t get me wrong. These are great companies to own during economic expansion. But they are even better during slowdowns. That is because demand for their products – which include Band-Aids, Sudafed, Tylenol, Pringles, Folgers coffee, and hundreds of others – never slows down. And constant demand means their earnings remain steady… which is critical to maintain stock values.
Investing in these companies won’t give you explosive returns. But with today’s economic and stock market uncertainty, wealth preservation should be your top priority. And that’s what these consumer-staple manufacturers will do for you.
Consumer staples should be a staple of your portfolio in today’s economy. Look to pick up Procter & Gamble and Johnson & Johnson to balance your portfolio and add some safety to the mix.
[Ed. Note: Rick Pendergraft is a professional trader and market analyst. In Rick’s new investment service, he reveals how you can make hundreds – even thousands – of dollars just by playing a simple game of “guess the pattern.”]Rick Pendergraft
Inspired by his high school economics teacher, Rick Pendergraft fell in love with the markets at an early age. He entered his first investing competition at 17, and opened his first brokerage account before he finished college. At the age of 23, on the third options trade he had ever placed, Rick turned $1,800 into $22,000 in less than a week, when the company he bought became the target of a takeover. He admits it was a stroke of luck, but it was a memorable education as to the leverage that options can provide. After a ten year career in banking, Rick decided to pursue trading full-time. To get his foot in the door, he started out in the sales department at Schaeffer's Investment Research. It was not long before his talent was recognized and he was invited to apprentice under Bernie Schaeffer, one of the top options traders in the world. Rick thrived in his new position and twice received the award for "Top Trader."Rick has developed a loyal following of readers who are grateful for his timely warnings and profitable advice. He is widely recognized as a market expert and has been frequently quoted by Reuters, BusinessWeek, Forbes, USA Today, the New York Times, and the Washington Post. Rick's primary focus is on identifying short and intermediate term rising and falling trends in the major market sectors. His analysis is based on technical factors along with indicators of market sentimentRick lives near Delray Beach, FL with his wife and three children.