The stock market looks less safe, with the CAPE ratio recently at its second-highest reading on record, persistent high inflation, the highest 10-year Treasury rate in nearly a quarter century, and a new Fed rate hike cycle adding to downside risks. The article highlights six stocks that have historically held up in turbulent markets and all outperformed the S&P 500 in the 2022 bear market: Berkshire Hathaway, Coca-Cola, Duke Energy, Johnson & Johnson, Realty Income and WM. Berkshire holds a massive $365.5 billion cash balance at the end of June, nearly a third of its market cap, which provides ballast in downturns. Coca-Cola and Johnson & Johnson have each raised their dividends for 64 straight years, and Duke Energy, a regulated utility, has paid dividends for over 100 years while executing a $103 billion capital investment plan through 2030. Realty Income has outperformed the S&P 500 in 11 of its 13 corrections since its 1994 listing, and WM's recurring revenue has made its stock about half as volatile as the S&P 500 while it has raised its dividend for 23 consecutive years.
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