In principle, there are no crisis-proof stocks that would be unaffected or benefit from a crash.
However, there are individual industries that are much more resilient than others.
Therefore, I advise you to follow the following strategy:
- Search for stocks you want to invest in, according to considerations below.
- Analyze these companies to see if they are financially well-positioned to survive a crisis unscathed.
- Watch the overall market and wait. The market is still volatile.
A crash or another climb cannot be determined beforehand.
In the event of a price slide, wait until low slipping.
I would like to give you a brief overview of the criteria by which ‘stable’ shares can be selected:
Think about which products can always be sold, regardless of the crisis.
This includes, in particular, goods for daily use.So everything that we consume regularly and quickly; even during a crisis.Thisincludes:
Food, Hygiene Products, Alcohol & Tobacco.
Three example stocks per industry that I would focus on:
- Kraft Heinz Co. (WKN: KHZ2)
- Nestle SA (WKN: NESR)
- Mondolez International Inc.
Drugstore and cosmetics industry:
- Henkel KGaA St (WKN: HEN3)
- Colgate-Palmolive CO. (WKN: CPA)
- Kimberly-Clark Corp.
- Philip Morris International Inc.
Alternative investment options:
This focuses on equity securities, which pay a regular and rising dividend to their shareholders.
Benefits of thisstrategy:
- Cash flow also during the crisis
- Financial buffer possible
- The performance of strong dividend stocks exceeds the performance of the indices in the long run.
Inverser ETF on an index
This strategy focuses on investing in an Inversen ETF.This is a trailing ETF, but it tracks the mutual development of an index.
The following applies:
If the index rises – the value of the ETF falls.
If the index falls – the value of the ETF increases.
Gold and silver are very popular during a crisis, which is another alternative to investing.