3 Dow Stocks to Buy for a Bear Market
A new battle with inflation has thrown Dow stocks into a bear market. At last week’s low, the Dow Jones Industrial Index was down 19.8% from its January peak – close enough to trigger the bear market alarm bells for all but the strictest of market watchers. Besides, all other indexes have already sunk deep into bear country. With a volatile and treacherous environment now upon us, it’s worth asking which are the best Dow stocks to buy? Of course, the answer depends on what you’re looking for, so let’s outline a few characteristics that position a stock to outperform in a bear market. First, it helps if the company has a business model that is less economically sensitive. Bears usually arrive when something ominous threatens the economy and public companies’ earning potential. Second, a history of lower volatility helps buffer your emotions when catastrophe laces the headlines and manic moves buffet your portfolio. Third, a reliable market-beating dividend can help incentivize you to stay the course.
3 Dow Stocks to Buy for a Bear Market
A new battle with inflation has thrown Dow stocks into a bear market. At last week’s low, the Dow Jones Industrial Index was down 19.8% from its January peak – close enough to trigger the bear market alarm bells for all but the strictest of market watchers. Besides, all other indexes have already sunk deep into bear country. With a volatile and treacherous environment now upon us, it’s worth asking which are the best Dow stocks to buy? Of course, the answer depends on what you’re looking for, so let’s outline a few characteristics that position a stock to outperform in a bear market. First, it helps if the company has a business model that is less economically sensitive. Bears usually arrive when something ominous threatens the economy and public companies’ earning potential. Second, a history of lower volatility helps buffer your emotions when catastrophe laces the headlines and manic moves buffet your portfolio. Third, a reliable market-beating dividend can help incentivize you to stay the course.