In a depression/bear market which type of stocks, i.e. industries or stock in particular are good to have?

Question

Or are not really affected as deeply as the averages, and other stocks?

Answer 1

If you truly believe it will be a depression then I'd stay out of stocks.  Even iron clad big name companies could fall off a cliff if products aren't selling... in a depression everyone gets hit.  Cash will be king in such a scenario!  Or, I might look at muni or US bonds... yields aren't great but they are safer.

Answer 2

Warren Buffett is buying name brands.  He seems to do well for himself and his shareholders.

Answer 3

Treasury and Municipal bonds

Answer 4

The ones people have been buying the last few months the deep cyclicals, base good and commodities.  Budweiser, Walmart, etc.

Answer 5

sometimes, doing nothing is the best alternative.

Answer 6

Consumer staples like Kimberly Clark, Colgate-Palmolive, Budweiser, Coke, Pepsi, etc.

Healthcare is something else that does well in down markets but it has not done so in this down market. Merck would be a consideration.

Beware of commodities because of the huge run up in this market. Bernanke said that he is going to work on strengthening the dollar which will bring commodities back in line if the dollar strengthens.

Answer 7

I agree somewhat with the answer above me.

You have to understand that other economies in the world are flourishing, international sales are saving the us stock market right now.

I would look US international corporations who have a sizeable chunk of their revenues coming from overseas.  I am not going to speculate about stocks, do not have the time nor space.

Industries that are doing well right now, Oil, Steel (China has a lot of demand for steel right now driving up demand.).

Here is a link that provides data on industries.

http://bigcharts.marketwatch.com/industr...

When assessing a particular economy, you have to look at economic indicators and here are some examples.

Growth (Real GDP), Inflation (CPI), and Unemployment rate.

You must also look at what interest rates are at as well and the yield curve.