3 Must-Have Stocks for a Bear Market

Investing in the stock market can feel like a wild ride at times. With so many companies to choose from and so many news organizations dedicated to churning out news about the market, it can be tough to know which companies are best suited for your portfolio.

Many investors choose to just park their money in a mutual fund or a collection of several funds and hope for the best, while others independently search for solid stocks with which to bolster their portfolio. While some companies are very sensitive to market fluctuations, others have a slower and steadier trend, which makes them perfect to hold during any cycle, including bear markets where panic is rampant. Three such companies that offer capital protection during a bear market are McDonald’s, General Mills, and Walmart. Let’s take a deeper look at each of these companies to see why you should stick with them when the markets turn bearish.

McDonald’s- Known the world over for hamburgers and French fries, McDonald’s is a classic American institution that has stood the test of time. While many fast food restaurants focus their marketing on higher end clientele, McDonald’s chooses to focus on how much value they deliver to the customer for a discounted price. This strategy is helpful when the economy goes south, as families are often seeking to tighten their financial belt through cost reduction strategies. McDonald’s also has a history of posting gains even as the overall market drops lower and lower.

General Mills- Known for its quality cereals, General Mills is a solid brand with a great reputation. It is also a great stock to own during a downturn, as it provides low cost food options that allow families to save money by avoiding eating out. Like McDonald’s, General Mills also has a history of posting gains for portfolios as the overall market slides, and also provides a healthy stock dividend.

Walmart- With a powerful brand and the reputation as a low-cost leader, it’s clear why Walmart is a great stock to own during a bear market or even a recession. Walmart has also traditionally performed well during tough times in the market, and offers a solid dividend that is sure to help investors offset any losses their portfolio might experience.