The Motley Fool Previous Page

Stocks to Beat an Economic Downturn

Katie Spence
July 29, 2011

There's a lot of fear swirling about as investors wonder what the future holds not only for the U.S.'s economy, but for the world economy as well. With talks of Greece defaulting and causing financial troubles for Europe, and talks of a possible U.S. default, it's not surprising that investors may be wondering which, if any, stocks are safe. Although no stock can be guaranteed as "safe," there are a few that are more likely to weather this storm unscathed than others.

Safety deposit box stocks
When I think of ultra-safe stocks, I think of blue-chip companies like General Electric and IBM that have been around for a while, have highly recognizable names, and have pretty strong financials. Given that they have a history of getting through tough times before, companies that meet these criteria are in a better position to make it through economic upheavals.

As I see it, big, well-known blue chips represent relatively safe investment prospects for the future, even if the economy turns downward again. And my personal favorite among blue chips is Coca-Cola (NYSE: KO  ) .

So much more than deliciousness in a can
Though it competes Dr Pepper Snapple (NYSE: DPS  ) and Pepsi (NYSE: PEP