Discuss: 9 Recession-Proof Stocks

cheryl · 06-27-2008, 05:50 PM

9 Recession-Proof Stocks - Motley Fool
I'll be frank: Right now is a terrible time to let yourself get psyched out of the market, particularly out of high-quality businesses. Short-sighted, panicky investors are practically tripping all over themselves to sell shares of outstanding businesses: names like Paychex, UPS, and American Express. They are selling. You should be buying.

BigBrownSanta · 06-27-2008, 06:01 PM

Is it just my browser, or was ups not mentioned once in this article?

moreluck · 06-27-2008, 06:07 PM

UPS is mentioned in the very first paragraph of Cheryl's post before you even click to go to the story.

BigBrownSanta · 06-27-2008, 06:23 PM

Quote:

Originally Posted by moreluck

UPS is mentioned in the very first paragraph of Cheryl's post before you even click to go to the story.

Yeah, I read that part, but when I clicked through on the link, my phone's browser jumbled the webpage. I thought maybe I was missing something.

moreluck · 06-27-2008, 07:16 PM

Here's what was mentioned in the article.......

"I'll be frank: Right now is a terrible time to let yourself get psyched out of the market, particularly out of high-quality businesses. Short-sighted, panicky investors are practically tripping all over themselves to sell shares of outstanding businesses: names like Paychex (Nasdaq: PAYX), UPS (NYSE: UPS), and American Express (NYSE: AXP). They are selling. You should be buying."

freeloader · 06-30-2008, 11:57 AM

And just what logic is he using to say that UPS is recession proof?

07-03-2008, 12:50 AM

Blah...nothing is recession proof. We've had recessions based on a multitude of variables. Right now it's the sub-prime mess coupled with the housing bubble bursting and $144/barrel oil.

I do agree that some stocks have been beaten up a bit too much. If you look at "beta"/risk or a comparison between S&P500 dropping 13% YTD there are some good bargains out there for high quality stocks. At $58 a share, I'd say UPS is a pretty safe bet or even moreso...GE. GE has been obliterated and is down to $26 a share and could easily pop to $40+ in the next year (which would yield you a 54% return + a 4.5% div yield for a total return of 58.5%)

Just some food for thought.....however....the fed was thinking the recession would subside by Q3 & Q4 of this year...now it's looking like early to mid 2009 things may turn around.

Not a good time to sell, but a good time to buy....selectively. You should all be dollar-cost averaging!! Buy shares low now...and get more shares for your $.