Warning signs are flashing as the CAPE ratio recently reached its second-highest reading on record, inflation remains high, the 10-year Treasury rate is at its highest in nearly a quarter century, and a new Fed rate hike cycle is underway. The article highlights six stocks that have historically held up during market selloffs and outperformed the S&P 500 in the 2022 bear market: Berkshire Hathaway, Coca-Cola, Duke Energy, Johnson & Johnson, Realty Income and WM. Berkshire holds $365.5 billion in cash at the end of June, nearly a third of its market cap, which provides ballast during downturns. Coca-Cola has raised its dividend for 64 straight years, Johnson & Johnson holds a pristine AAA credit rating, and Duke Energy, a regulated utility, is 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 public listing, and WM is described as a leading environmental solutions provider with very resilient recurring revenue.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: When the Stock Market Gets Dangerous , These 6 Investments Have a History of Holding Up
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