This year’s market selloff has been relentless and shows no signs of slowing down anytime soon. with S&P 500 and Nasdaq indexes down 20% or more for the year and officially in a bear market, many analysts and traders are calling this year’s decline a “crash.”
Famous investors Michael Burry and Jeremy Grantham have each compared this year’s market crash to the dot-com and real estate busts of 2000 and 2008. They predict more pain is ahead for investors as central banks around the world. raise interest rates to reduce stubbornly high inflation to its 2% targets.
The good news for individual retail investors is that there are several solid stocks available S&P 500 Index which can be bought now at discounted prices and provide predictable future profits.
Here are seven S&P 500 stocks to buy during the current stock market crash.
|BAC||Bank of America||$32.56|
The consumer electronics giant Apple (NASDAQ:AAPL) stays the largest stock in the S&P 500 index with weighting. With a market capitalization of $2.5 trillion, Apple is the largest public company in the United States
Before Covid-19, Apple’s market capitalization has surpassed $3 trillion, making it the most valuable company in the world. It’s hard to overstate the size and scope of Apple’s impact on the S&P 500 and other indexes. A fall in AAPL stock could drag the entire market down and send investors sprinting for the exits.
Fortunately, under the leadership of Tim Cook, Apple remains a stable, profitable and well-run company. Apple’s core electronic products, such as the iPhone, Apple Watch and MacBook computers, remain a fixture around the world, complemented by a growing number of services such as Apple TV, books and podcasts.
The main reason for this is the lasting success of the company AAPL stock is down just 14% this year, which has proven more resilient than many other tech stocks. Over the past five years, Apple’s stock price has risen 300%.
There are plenty of reasons for investors to remain bullish on the EV maker Tesla (NASDAQ:TSLA).
While the Austin, Texas-based company has faced form challenges this year regulatory investigations, China’s renewed Covid-19 restrictions and a slowdown in consumer demand, it also scored more hits. These include the opening of a new production facility outside Berlin, Germany and doubling of vehicle sales in the US Tesla remains the global market leader in electric vehicles, and all other automakers are rushing to catch up.
As for the company’s stock, TSLA stock just split for the second time in as many years. On August 24, Tesla split its stock 3 for 1. This followed a 5 for 1 stock split in August 2020. The latest split lowered TSLA’s stock price to just under $300 per share.
Due to the 18% drop in the share price, the stock has become more accessible even for small investors. Many analysts continue to expect Tesla to remain the world leader in electric vehicle sales for the foreseeable future, given that the company spends 19% of its gross profit on research and development (R&D), allowing it to stay several steps ahead of its peers. competitors.
Healthcare is not actually subject to economic cycles. The healthcare sector is increasingly affected by demographics such as an aging population, as well as government regulations, prescription drug approvals and technological advances. As such, healthcare stocks can help a portfolio weather the ups and downs of the economy and the market. One such stock is UnitedHealth Group (NYSE:UNH), the the largest health insurance company in the United States and the largest healthcare company in the world with annual revenues exceeding $285 billion.
UnitedHealth, one of the 10 largest stocks in the S&P 500, is up 3% this year. Over the past 12 months, UNH shares are up 26% despite a broader stock decline. The size and resilience of UnitedHealth stock is one reason why investors should consider owning it to help them ride out the stock market crash.
Although it hasn’t seen a significant breakthrough in more than a year, the credit card giant Visa (NYSE:V) remains a reliable blue chip stocks. This year, V stock is down 14%. But over the past five years, Visa stock is up nearly 80%, and has gained 660% over the past decade. The San Francisco-based payments company has proven it can weather economic and market turmoil and come out stronger on the other side.
The company also has experience in adapting to technological upheavals, which is now an example with the proliferation of competing financial (fintech) companies and payment applications, such as e.g. Block it (NYSE:SQ) and SoFi technologies (NASDAQ:SOPHIE).
Despite competitive pressure, Visa remains the market leader among established credit card issuers. In 2020, nearly half (49%) of American adults had a Visa card in their wallet, compared to 39% who had a Mastercard card and 15% who had an American Express card. Visa is also a cash cow, as she created $16 billion in free cash flow over the past year, giving it the wherewithal to weather any stock market crash.
A large retailer Costco (NASDAQ:COSTS) is a sure bet in any economy. The Seattle-based company managed to keep its 117 million cardholders renewing their memberships this year by offering lower prices on products ranging from gas and glasses to meat and vegetables.
As inflation has driven up consumer prices, people continue to turn to Costco for deals. That customer loyalty allowed Costco, which reports its earnings monthly, to make the announcement August sales 17.55 billion USD, which is 11% more than the previous year. The company’s same-store sales increased by 8.7% in the month.
Still guessing that Costco is planning to raise the membership fee helps mitigate the effects of inflation. That speculation grew louder after competitor Sam’s Club announced it was raising its basic membership fee from $45 to $50. However, Costco has so far kept its two-tier membership fees at $60 and $120, respectively. The company also kept its own the popular hot dog and soft drink deal for $1.50 unharmed, much to the delight of the patrons.
Year to date, COST stock is down 13%.
People continue to drink Coca-Cola (NYSE:WHEN) even when the stock market crashes. Some people may drink more Coke when they are stressed due to bad market conditions. This makes the stock KO a permanent investment for investors to hold through market cycles.
In fact, Coca-Cola’s stock is so stable that some analysts compare with circuit. The share price never rises or falls dramatically, but rises a few inches over time while paying a decent quarterly dividend yielding 2.95%.
This year is a good example of the uniformity of KO shares. Year to date, the share price is up a slight 0.7%. Over the past five years, the stock has gained 32%. After seeing sales slow in 2020 due to restaurant and bar closures due to Covid-19, Coca-Cola is back. In 2021, the Atlanta-based company’s sales rose 8% as lockdowns ended around the world. Coca-Cola expects sales to rise another 12 to 13% this year. According to forecasts, earnings per share for the whole of this year will increase by 5 to 6%.
Bank of America (BAC)
Higher interest rates should help strengthen finances Bank of America (NYSE:BAC), the second largest lender in the US. Over time, the higher interest rates charged on its mortgages, lines of credit and other loans are sure to be reflected in Bank of America’s balance sheet and stock price. But in the short term, the Charlotte, North Carolina-based financial institution is grappling with a slowdown in its consumer lending business, reduced revenues from trading and trading desksvolatile commodity prices and growing fear of economic recession.
These issues have helped BAC stocks fall 27% this year. But rather than panic, intrepid investors should see BAC’s stock pullback as a buying opportunity. In addition to the reduced share price, Bank of America also has low price-to-earnings ratio of 10.36x and pays a dividend of 2.7%.
History shows that bank stocks are among the first to recover when the stock market rebounds from a crash, and Bank of America shareholders should benefit from higher interest rates over the long term.
On the day of publication by Joel Baglole held long positions in AAPL, V and BAC. The opinions expressed in this article are those of the writer and are the subject of InvestorPlace.com Publishing Guidelines.