Larry Fink might not be as well-known as, say, Warren Buffett, but the Blackrock CEO arguably has a greater insight into the global economy.
Blackrock is the world's largest asset manager. It oversaw $11.55 trillion in assets as of the end of 2024, including exchange-traded funds (ETFs) under the iShares brand, investment management brands under Barclays and Merrill Lynch, infrastructure investment fund Global Infrastructure Partners, and other such subsidiaries and minority stakes.
Fink just shared his thoughts about the global economy in his annual letter to investors, and the beginning was striking.
He said, "I hear it from nearly every client, nearly every leader, nearly every person I talk to: They're more anxious about the economy than any time in recent memory."
Fink goes on to discuss the importance of capital markets, opening them up to more people and investing in infrastructure, which he sees as a massive and crucial growth market. While he doesn't have advice on individual stocks, it's clear that, even before the new round of tariffs was announced, investor sentiment was souring. Consumer confidence has weakened. Stocks have entered a correction, and some economists are even warning about a potential recession.
If you're feeling like one of the people Larry Fink has been talking to, here are three stocks to help you ride out a turbulent market.
Image source: Getty Images.
1. AutoZone
If you're looking for a resilient, recession-proof stock to buy, it's hard to find a better option than AutoZone (AZO +2.57%). The retailer's track record in down markets is practically peerless. The stock has not only outperformed the market but delivered strong gains during the dot-com recession, the great financial crisis, and the 2022 bear market -- and it's jumped this year, as well.
NYSE: AZO
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AutoZone benefits from operating in a countercyclical industry. Demand for aftermarket auto parts tends to increase in tough economic times as consumers delay or avoid buying cars, and there are signs that President Trump's recent announcements of tariffs on foreign car imports are benefiting the auto parts industry.
AutoZone has also been helped by a smart management team that has prioritized the professional channel, ensuring its stores have ample inventory and can deliver quickly to repair shops. The company has also blanketed the country with stores, as it now has roughly 6,500 locations in the U.S. and more than 7,000 globally. AutoZone also has a strong track record of buying back stock, helping to juice earnings per share.
Overall, that has proven to be a winning formula for AutoZone in any market. At Thursday morning's prices, the stock is up some 380% over the last five years.
2. Berkshire Hathaway
Almost no other company can boast the kind of record Berkshire Hathaway (BRK.A 0.16%) (BRK.B 0.10%) has in six decades' worth of bear markets.
Warren Buffett, whose name is synonymous with the company he's run over that time, is probably the most highly regarded value investor around, and Berkshire is known for outperforming in bear markets, using them to its advantage like when it took a preferred stake in Bank of America coming out of the great financial crisis.
NYSE: BRK.B
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There are also signs that Buffett has been preparing for a sell-off, hoarding cash as he's trimmed his massive stakes in Apple and Bank of America, and he has acknowledged several times in recent shareholder letters that valuations are unattractive.
Additionally, Buffett has built Berkshire Hathaway to withstand recessions, as it owns dozens of subsidiaries that have sustainable competitive advantages. As valuations fall, don't be surprised to see Buffett go shopping. Though he may not find another elephant to hunt -- his term for big acquisitions -- he's likely to find stocks more attractive if the market continues to soften.
3. Realty Income
Another stock to consider to help you sleep at night is Realty Income (O +0.70%), a real estate investment trust (REIT) that focuses on triple-net leases, meaning its tenants pay maintenance, taxes, and insurance. It generally rents to recession-proof businesses like 7-Eleven and Walgreens.
Realty Income has also been a reliable dividend payer throughout its history, and most of its returns have come from dividends. The company has raised its dividend for more than 100 quarters in a row and also pays a monthly dividend, providing a benefit to investors who prefer to get paid more frequently.
As of Thursday's prices, Realty Income offers a dividend yield of 5.6%.
NYSE: O
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REITs like Realty Income could benefit from an economic slowdown in another way. A slowing economy is likely to drive interest rates down, which will help the company in two ways. First, it makes it easier for it to borrow to make acquisitions as well as refinance any variable rate debt, and it makes dividend stocks more attractive in comparison to bonds.
Realty Income has the business model, real estate portfolio, and income generation to overcome any upcoming economic headwinds.
