Research carried out by financial information website Safe Trade Binary Options shows that investors are flocking to hunt out safe-haven stocks as recession worries continue to swirl.
The site’s analysis confirmed that even amidst the global economic uncertainty and geopolitical challenges impacting on investor confidence, some stocks remain popular – likely because they are seen as safer havens during bear markets.
Study author, Saqib Iqbal says that even with the bear market, there are still some stocks exhibiting steady demand. ” Following the booming bull market of 2021, 2022 has been a particularly unpleasant year for investors. Nearly all major indices and many individual stocks are down by double digits this year, which unsurprisingly means we’re seeing investors cautious of putting additional money into an already bearish stock market.
“Although we aren’t in a recession, we are in an economic downturn, which creates uncertainty in the market. When there is so much market uncertainty and volatility, investors seek to get out, regardless of how well their stocks are doing. However, some stocks perform better in an economic downturn; you just have to look for specific sectors.”
Safe Trade Binary Options analysis confirms those sectors are what are widely considered to be recession-proof industries such as energy, healthcare, and defense. Examples of stocks performing well and in demand include:
- Biogen (+42% YTD)
- Exxon Mobil Corp (+68% YTD)
- Coterra Energy (+76%)
- EQT Corp. (+40%)
- McKesson Corp (+27%)
Iqbal adds, “No recession lasts forever but some investors are understandably cautious about investing at the moment. It’s important to keep in mind that stocks can be a long-term investment. To create stability, amending your portfolio allocations to invest more in risk-free stocks is a tried-and-tested strategy.
“The good news is that just because the stock market is down doesn’t indicate that every business is in trouble. The bad news is we don’t always know if particular sectors will perform well.”
To find out more, visit: safetradebinaryoptions.com