3 Stocks To Depression Proof Your Portfolio – Stock #2
We’re already in a recession. This is true in economic terms. But in the coming months I don’t think we’re looking at another bad recession… I think we’re looking at a depression type scenario.
As of this writing there are already more than 30.5 million Americans unemployed and getting state or federal government assistance.
50 million jobs have been lost since March.
Millions of Americans can no longer pay their bills.
Businesses are going bankrupt rapidly.
This was from the first set of lockdowns. And we’re dealing with the worst economy since The Great Depression.
Now with new coronavirus cases exploding nationwide cities and states are locking things down again.
And things are poised to get even worse economically for us all because of the horrific things above.
These first coronavirus lockdowns crippled the US economy like nothing we’ve seen in our lifetimes.
I think analysts, politicians, and officials who talk about us going through a recession are delusional.
We’re not heading toward a recession.
We’re headed toward a depression type of economy.
And few in the mainstream media and financial news are talking about this.
A month ago I showed you 3 Stocks That Will Earn You High Returns In The Coming Depression.
And yesterday I showed you Stock #1 in our 3 Stocks To Depression Proof Your Portfolioseries.
Today I want to show you Stock #2 in this series.
These stocks will help you earn safe and solid investment returns no matter whether we’re in a prolonged depression. Or whether we recover and go back to normal life tomorrow
Let’s get to it…
Depression Proof Stock #2 – Mondelez International (MDLZ)
Another thing people won’t stop during any kind of depression scenario is eating.
People will stop paying their bills but they won’t stop feeding themselves and their kids.
That’s why Mondelez is on this list because it helps feed the world.
You may not recognize this name like you did with Procter & Gamble… But you use and recognize its brands.
Some of its most recognizable brands are as follows.
- Chips Ahoy!
- Honey Maid
- And Wheat Thins
Mondelez sells snacks and other foods in all our pantries… Or most of our pantries if you haven’t cut sugar out of your diet completely.
This won’t stop because of any pandemic either.
Plus, it’s also a solid company like Stock #1 yesterday.
Its operating profit margin averaged 12.9% every year over the last 10 years. Like mentioned above, I look for any company to produce above 10% margins on a consistent basis to consider buying it.
And its FCF/Sales margin averaged 7.8% per year… I look for anything above 5% on a consistent basis to consider an investment.
The company meets my threshold on both important metrics… These are important because they show Mondelez produces profits and cash to continue funding operations and growth.
Plus, it also pays you a 2.3% dividend just to own their shares.
And on top of this its selling at a reasonable price to cash flow (P/CF) ratio of 20.6 as of this writing.
I want to own companies that are profitable and at least fairly valued. I look to research stocks further that have a P/CF of 25 or lower… If I can buy at cheap prices even better.
Mondelez is another stock that will be around for decades to come – no matter what the economic situation becomes.
Because of this, you should look at them if you’re looking for Depression resistant stocks.
As I said above, I think we’re heading not for an average recession… Or even a bad recession like we saw from 2007 to 2009.
I think we’re heading for a Depression type of economy in the coming months. And the best thing to do is prepare yourself and your investments.
The list above should give you great ideas on stocks that will not only survive whatever downturn is still to come. But also thrive in the coming years and decades no matter what our economic situation looks like.
Use the links below to learn other ways to protect yourself in these uncertain times.
- 3 Blue Chips To Avoid Like The Corona
- 3 Reasons Banks Are In Trouble In The Short Term
- One Thing To Do Today To Protect Your Investments
- 3 Stocks That Will Earn You High Returns In The Coming Depression
- 3 Stocks To Depression Proof Your Portfolio – Stock #1
Tomorrow, I’ll show you the 3rd stock in our series 3 Depression Proof Stocks To Buy that will help Depression proof your portfolio.
Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.