Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Investing, by its very nature, is unpredictable, and while there is a wealth of information available regarding trading platforms, stocks, and practices, it is not possible to predict all the variables. 2020, in particular, has proven that unprecedented events can occur that change the situation of the stock market. The event in question is, of course, the global pandemic.
Which Stocks Will Protect My Portfolio?
The COVID-19 outbreak has had significant consequences, especially in the business world. This included many businesses having to shut down and a record number of people out of work. The stock market reacted to COVID-19 similarly, as major indexes such as the Dow Jones saw historic lows after the outbreak. While the US Dollar remained strong initially, the stimulus package impact could result in another story.
As the months passed, however, some signs of recovery have emerged, and some of the damage done to stocks due to the pandemic has been reversed. Thus far, businesses who proved themselves a necessity as the world went into lockdowns, such as Netflix and Zoom, have come out on top.
Traditionally strong stocks have also seen a comeback. As we enter the second half of the year, investors are likely to be concerned about what stocks to invest in moving forward.
In this article, we will highlight the three stocks to invest in to protect your portfolio for the rest of 2020, as the markets reopen.
Alphabet is already known within the business world as the parent company of Google. However, it has always been a bit of an underdog, falling behind other tech companies like Apple and Microsoft. The emergence of COVID-19 has changed the perception of Alphabet to a degree.
Following lockdown measures, there was greater use of Google services, and on top of this, less money was being spent on ads. The company is currently putting measures in place to make sure that if another wave of infection occurs, they will be unaffected.
While their stock is pricey and they do not make headlines as often as some of their contemporaries, Alphabet stock appears to be a safe bet. Should their efforts succeed, they should be producing impressive results for shareholders well into the future.
Even before COVID-19, Walmart had been positioning itself as a go-to for household items for affordable prices. When the pandemic hit and millions of Americans lost their jobs, there was an even greater need for Walmart products, and this demand is expected to continue as full economic recovery is not expected until 2021.
They had also made an effort in the last few years to expand on the e-commerce arm of their business and leveraged their wide network of physical stores to offer deliveries and pickup for customers. As such, their stock has remained strong during the pandemic, and seeing as they appear to be on the path to consistent business post-COVID, they appear to be a good and safe stock option.
Verizon, already a telecommunications giant, is on its way to rolling out one of the most innovative new products within its sector: 5G. The generation of wireless communication is poised to become one of the fastest-growing products in telecommunications. This is coupled with the fact that the lockdown has increased the global internet use.
Verizon stock offers a dividend yield of 5.4%, which is higher than what you would get on the broader market. Between this and its 5G exploration, Verizon stock seems like a safe bet.
The first half of the year was turbulent for the business world and for stock markets. As the world attempts to get back to normal, building a portfolio strong enough to thrive in the coming years might be tricky.
Above are some of the stocks that, based on current circumstances, are expected to do well. Fortunately, there are a number of top stock apps which allow investors to buy and sell stock directly from a smartphone.
Make sure to conduct responsible stock research prior to making any big moves.