The stock market is at a dangerous crossroads.
On one hand, the inverted yield curve, a slowing economy, and disappointing jobs and retail numbers are pointing toward a 2020 recession.
On the other, the Fed and other central banks around the world are back to printing record amounts of money, which typically propels the markets upward.
To top it all off, Washington and Beijing are signing a dubious trade deal that, other than scoring political points, won’t have much effect on the economy. None of the contested issues have been resolved.
In this kind of an environment, betting on which way the stock market is going to move is like going to a casino. The chances of winning are 50:50 at best.
However, you do have a way to profit.
In times like these, I like to invest in stocks that will win in any scenario.
A trade deal or an escalation of tariffs… a recession or a continued expansion… which stocks will thrive in any of these outcomes?
I’m talking about recession-proof, trade-war-proof investments in companies with excellent growth projections.
Sounds like the kind of thing that should be in every portfolio right now, doesn’t it?
Here are three to look at:
First is AT&T, one of the largest U.S. wireless carriers.
Behind food, water, and electricity, access to information is our most important utility. Faced with an economic slowdown, people will cut other expenses before reducing or (perish the thought) letting go of their internet subscriptions.
Moreover, AT&T is a domestic pure-play. It has a small Latin America operational segment that contributes just 4% to the overall revenues. The U.S.-China trade war doesn’t affect this telecom provider.
Finally, AT&T has excellent growth projections. In 2020, it is launching its 5G network, as well as a video-streaming service called HBO Max. Both should add a nice boost to the company’s revenues.
LTC Properties (LTC)
Next, we have LTC Properties, a REIT (real estate investment trust) that operates senior housing and long-term health care facilities.
Health care is another expense people spend on no matter what. For most of us, it’s the highest priority in life. For that reason, health care companies don’t lose revenues during downturns, making LTC Properties a recession-proof business.
Furthermore, this REIT only operates facilities in the United States. Therefore, again, this company shouldn’t experience negative effects from tariffs.
However, what I really like about this company is the fact that 10,000 Baby Boomers are retiring every day. The demand for LTC’s services is increasing dramatically and will continue to do so for years.
The last pick on this list is Expedia, the world’s largest online travel agency.
I might surprise you here when I say that this is a recession-proof business. But it’s true.
When economic conditions tighten and tourist numbers fall, hotels that previously could fill their rooms through their own websites pivot to advertising through discount booking websites. So, in an economic downturn, Expedia could lose money on the tourist side but gain it back from hotel advertising.
Being an internet company, Expedia also avoids negative effects from the ongoing trade war.
Finally, I like this company because of the growing global middle class. This could translate into more people with the means to travel in the future, making Expedia a good investment for 2020 and beyond.
Want More Stocks Like These?
I selected these three stocks from my True Retirement Wealth portfolio.
If you want to know more about why I think they’re a buy… or would like other similar picks… I suggest you subscribe to my True Retirement Wealth newsletter.
In the next issue, which will be published next Tuesday, I’ll talk about another recession and trade-war-proof stock with excellent growth projections that I think should be in every investor’s portfolio right now.