It used to be that a 300-point swing for the Dow was big news, but throughout the past few months, it’s become a common event. All this manic activity has left many investors confused and scared.
But you CAN profit in this market. By finding stocks that are growing sales and earnings — even as the rest of the American economy is shrinking — you can recession-proof your portfolio.
I have three powerful picks that will recession-proof your portfolio because they are in industries that are not affected by the mess in other sectors like autos, airlines, retail, banks and the rest. Here they are:
Stock #1: General Mills (GIS)
General Mills (GIS) is the second-largest cereal maker in the world (behind rival Kellogg) and fills America’s cupboards with its recognizable brands of delicious treats. I’m sure you have some of this company’s products at home right now — Cheerios, Betty Crocker cake mixes, Green Giant veggies and Yoplait yogurt are all made by General Mills.
You might think that with the soaring cost of grains like corn and wheat that this stock would be hurting, but that couldn’t be farther from the truth! General Mills is a master of marketing and has been profiting from its vast international operations, a competitive U.S. dollar and its dominant brands. Sure, money is tight in households across America, but there are many General Mills brands shoppers just won’t skimp on.
This Conservative stock is a great buy that should continue to appreciate steadily thanks to its huge reach and economy of scale.
Next: Stock #2…
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Stock #2: Walmart (WMT)
Walmart (WMT) is by far the world’s leading retailer, with more than 7,250 stores. About 55% of its stores are in the U.S., but Walmart has been expanding internationally and is the largest retailer in both Canada and Mexico. In the current dismal retail sales environment, where even mighty Costco is issuing earnings warnings, Walmart is the only major retailer that continues to post strong same-store sales and exceed analysts’ expectations.
As companies reported weak same-store sales lately, the largest retail discounter in the world actually saw its same-store sales increase every single month since the Lehman Brothers collapse! This stock has proven to be an investor’s safe haven amidst the economic turmoil.
Stock #3: McDonald’s (MCD)
McDonald’s (MCD) is the world’s top fast-food company by sales, with more than 31,800 flagship restaurants serving burgers and fries in more than 100 countries. Almost 30% of its locations are company-owned, while the others are run by franchisees. Most of the company’s restaurants are freestanding units, but it does have some quick-service kiosk units located in airports and selected retail areas.
Each restaurant gets its food and packaging from approved suppliers and uses standardized procedures to ensure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing. McDonald’s also owns the Boston Market fast-casual chain and has a minority interest in Britain’s sandwich chain Pret A Manger.
I expect a weaker dollar to add to McDonald’s bottom line — earnings are typically boosted when the U.S. dollar softens, due to its vast international operations. A strong history of great earnings and earnings surprises will continue to fuel this company’s success. (More on MCD here.)
The massive waves and sheer power of the credit crisis has injured investors, businesses and our economy. But that doesn’t mean ALL stocks are off limits. Louis Navellier’s Blue Chip Growth Buy List currently carries over 25 fundamentally strong stocks like the ones outlined here today. There’s no other list like it on Wall Street. If you sign up for Blue Chip Growth today, you can lock-in a risk-free one year subscription at 50% savings. Get started today!