The best stocks to invest in for defensive plays are in the S&P 500. Sure, they may decline too during a correction or a downturn, but they will not go down as much as a small cap stock. Here are some good stocks to invest in that are in this index. This index comprises 500 of the biggest companies in the New York Stock Exchange and the NASDAQ. That is why it is considered on of the bell weather indexes. Not only that, but because it also makes up 70% of the market cap of the US stock market.
The biggest corporation in the S&P 500 is Exxon Mobil (XOM). They are an energy company drilling, producing, refining and distributing oil primarily. But they are also getting in on the natural gas business as well. They make a lot of money, but they also know how to invest in future markets. Their investments into gas show this to be the case because it’s going to be the next big energy source.
Next on the list is Apple (AAPL). This has to be the come back story of the new millennium. They have always been in Microsoft’s and the PC’s shadow, but they made a strong comeback with the genius of Steve Jobs. Now they are one of the largest technology companies in the world and many are looking for more growth to come.
Surprise, surprise, another oil company makes it to the list. Next is Chevron (CVX). Another big oil producer with a lot of prospects for growth. They are also investing in alternative energy sources like algae of all things.
Then we have IBM. Although they started in the PC market, they have outgrown that market. Oh yea, and also got beat out by other companies. In any case, they are still going strong, mostly providing servers to the business sector.
You should first look to the S&P 500 if you are looking for large cap stocks. There are many reasons why these are good stocks to invest in, especially now at a time of economic uncertainty. Here is the best of the best from this group of stocks.
A soft patch is upon us. The thing is, no one really knows how temporary it is. Economists keep trying to reassure us that this is a minor blip, but many investors are not convince. Unfortunately, it’s the market that counts right now. So people tend to hide in defensive stocks. One of those sectors is health care, and the largest in this industry is Johnson & Johnson. When people are learning how to invest, they find out that these are the safe and steady companies that will take you through a recession.
Johnson & Johnson (JNJ) produce everything from medicine, medical equipment, baby stuff and shampoo. They have a very broad consumer business. They are also strong financially and their dividends are growing. Not only that, they are one of the stock leaders of the fastest growing sector that the S&P 500 tracks. Not only are they good for a recessionary play, they will also perform well in an upturn.
Another company that seems to have their hand in every pie is General Electric (GE). I like them as an emerging market play. As these economies develop and create a new middle class, these in this demographic will need things like appliances and the like. Although they recently took a hit in their nuclear business, they are diversified enough that they can make it up somewhere else.
AT&T is also strong as they seek to join T-Mobile to create the infrastructure for future growth. Their customer service might not be great, but their business is growing nonetheless.