2 Stocks to Buy Now Before the Stock Market Crashes

A recession is coming. despite S&P 500 approaching the all-time high, the yield curve has inverted and Sahm rule has been activated. The Federal Reserve is also poised to initiate its first interest rate cuts in over four years.

With unemployment rising, the Bureau of Labor Statistics has also revised dramatically with 818,000 new jobs being created in the past year. It’s time to prepare for impact.

This does not mean taking all your money out of the stock market. It means that it is important to keep some dry powder for when the market crash hits. The best stock buys are found during corrections, crashes, and yes, recessions.

Maybe take some profits from some of your big winners over the last year or two. Take positions in more defensive sectors and actions. You won’t be able to avoid all the market pain, but you can lessen its effects.

Remember, every bear market is followed by a bull market that wipes out all vestiges of minimal strikes. Almost no one remembers the pandemic-induced crash of 2020, which saw the market lose more than a quarter of its value in just a few weeks. That’s because the stock market always goes to higher highs.

As you search for these recession safe havens, the two stocks below should be at the top of your buy list for the coming crash.

Key points about this article:

• Numerous signals point to a potential stock market crash that will hit as soon as the economy weakens.
• The best offense to protect your portfolio in a downturn is a good defense, like these two stocks from defensive segments of the market.
• If you are looking for action with huge potential, be sure to grab a free copy of ours brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

AbbVie (ABBV)

Pills wrapped in plastic

The pharmaceutical giant AbbVie (NYSE:ABBV) is a solid pick for a market and economic downturn. Healthcare is essential for everyone and few will give up their prescriptions during bad times. AbbVie is not a recession-proof stock, but it is certainly very resilient.

The pharmaceutical action even managed to negotiate the loss of patent protection on its monster rheumatoid arthritis (RA) drug, Humira. While AbbVie lost almost a third of drug sales Last year, as biosimilars hit the market, it still accounted for more than $14 billion in worldwide sales, or 27% of total revenue.

But pharma has a strong portfolio of marketed and developing drugs it can draw on to help make up the shortfall. For example, plaque psoriasis treatment Skyrizi saw sales grow 50% in 2023 to $7.7 billion, and Rinvoq, another RA therapy, saw sales grow 57% last year, to almost 4 billion dollars. Through first half of 2024sales of those two drugs rose 44% and 53%, respectively, even as Humira fell another third.

AbbVie also pays shareholders a dividend yielding 3.2% annually. She has increased her pay every year since she was separated Abbott Laboratories (NYSE:ABT) in 2013. Over the past decade, AbbVie has a total return of over 436%, compared to a 238% return for the S&P 500, making it a great stock to buy in preparation for a market crash.

Altria (MO)

Marlboro cigarette boxes

Tobacco stock Altria (NYSE:MO) hasn’t offered investors the same kinds of returns as AbbVie, but it makes up for it by being able to withstand the worst of recessions. Because of the addictive nature of nicotine, smokers continue to buy cigarettes regardless of the conditions. He might even smoke more. Even when prices rise, which Altria tends to do two to three times a year to offset rising costs and taxes, it loses few customers.

Its Marlboro brand remains the dominant cigarette in the market with a 42% share overall and holds a 59% share of the premium cigarette market.

However, there is a secular decline in smoking in the US that cannot be ignored. Altria is pursuing low-risk products in response, including chewing tobacco, snuff and snus, nicotine pouches and vapor products. Despite its $13 billion investment in a single e-cigarette leader Juul Labs went up in smoke, has since acquired the NJOY brand.

Vaping appears to be the future of smoking, and Altria is slowly increasing NJOY’s market share. It was always a distant third with a negligible share, but Altria has increased it to 5.5% and should continue to grow in the future. NJOY enjoyed a 14% increase in supplies shipments in the second quarter and an 80% increase in device shipments.

Altria also pays a sustainable dividend yielding a rich 7.7% annually. It paid its first dividend in 1928 and began increasing it regularly in 1969, achieving 55 consecutive years of dividend increases. MO stock is another great stock for your disaster preparations.

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