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Worried About a Stock Market Crash? Buy These Recession-Proof Tech Stocks

Worried About a Stock Market Crash? Buy These Recession-Proof Tech Stocks

Sure, the stock market is booming now, but remember that it was also booming in January of this year — right before the quickest market crash of all time. Meanwhile, Congress is at an impasse on a new stimulus deal, even though leading Federal Reserve officials are pleading for more fiscal help.

A sudden market turnaround isn’t out of the realm of possibility. You can prepare for it and reduce your risk by investing in recession-resistant businesses. Investing in recession-proof stocks lets you sleep well at night and hold for the long-term, no matter what craziness is going on in the real economy. While no stock is 100% immune to the real economy, some companies have better business models for dealing with downturns, even in the high-flying technology sector.

Some recession-resistant companies offer needed goods or services that must be bought in good times and bad. Others cater to a mass-market audience, providing a good or service at lower costs than competitors. That second type of stock may actually benefit during recessions by scooping up market share.

That’s why the following four recession-resistant tech stocks look like fine buys today, even if the stimulus lags and the economy double-dips.

A person leans back in a desk chair with their hands folded behind their head, staring out the window at a city skyline.

Image source: Getty Images.

Amazon

It’s Prime Day! That means deals, deals, deals on a wide variety of goods and services from Amazon (NASDAQ: AMZN), the dominant player in U.S. e-commerce. Amazon was the first mover in e-commerce. Today, its massive scale and distribution network allow it to offer unbeatable selection, prices, and one-day delivery, which the company rolled out last year.

Even in tough times, it’s really hard to give up your Amazon Prime membership, which counted more than 150 million members worldwide as of last year. Given the importance of Amazon’s services amid the pandemic, that number is

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3 Safe Stocks for a Coming Market Crash

3 Safe Stocks for a Coming Market Crash

Last month’s slump was a reminder of how quickly the market can go from a rally to a pullback. In this case, the situation is looking bright. The S&P 500 has rebounded more than 7% since its September low, nearly recovering those losses. It’s impossible to predict whether the market will head higher or crash in the months to come. But we do know one thing: Long-term investors will surely face future market crashes. That’s why it’s never too early to prepare.

To me, the best way to insulate a portfolio is with shares I consider “safe.” These are companies that have proven their resilience after a crash, and at the same time they offer strong products/services and growth prospects. Sounds like a lot to ask? Well, these three healthcare names prove it’s possible to deliver the whole package.

Man looking at stock charts on computers in office

Image source: Getty Images.

Abiomed

Annual revenue at Abiomed (NASDAQ: ABMD), a maker of circulatory support devices, has been climbing for more than a decade. During this time, the U.S. Food and Drug Administration (FDA) cleared its collection of Impella heart pumps — the world’s smallest — for elective and urgent procedures including stenting and balloon angioplasty.

Impella devices assist pumping during a procedure or during situations — such as cardiogenic shock — when the heart is unable to pump enough blood to organs. More recently, the FDA granted the Impella two emergency use authorizations (EUA) for the treatment of COVID-19 patients with heart and lung complications.

The coronavirus outbreak caused the postponement or cancellation of many elective procedures, which hurt Abiomed. Worldwide Impella revenue fell 22% in the most recent quarter. But the company said stenting procedures using Impella since have resumed in most locations. In addition to this rebound in traditional business, the COVID-19 EUAs offer Abiomed another

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Market Crash 2.0: Where to Invest $1,000

Market Crash 2.0: Where to Invest $1,000

Investors have experienced years’ worth of volatility in the past nine months. First, we witnessed the fastest descent into bear-market territory in history as the coronavirus pandemic took hold in March. Then, the market vaulted higher, even reaching brand-new highs in August. But in September, stocks slowed down some, and the S&P 500 dropped by about 4.6%.

Volatility is, of course, part of the investment cycle, and so are bear markets. That means another market crash will happen; it’s just a matter of when. Maybe a second (or third) wave of COVID-19 will be the catalyst; maybe it will be something else entirely. No matter when or why it happens, here are two stocks that will survive the next market crash and continue climbing long after: Guardant Health (NASDAQ: GH) and Abbott Laboratories (NYSE: ABT).

Let’s look closer into why putting $1,000 of your hard-earned cash into either (or both) healthcare stocks would be a great move.

GH Chart

GH data by YCharts

Guardant Health: The future of cancer diagnostics

Guardant Health develops liquid biopsies — tests that allow physicians to look for cancer cells from tumors in blood samples. Why is this method a big deal? One of the main alternative techniques, tissue biopsy, requires direct physical access to the tumor inside a patient’s body. This competing procedure is riskier, more time-consuming (resulting in a delay in treatment), and more expensive. Liquid biopsies can help detect cancer sooner, improve health outcomes, and reduce costs.

Guardant Health generates the bulk of its revenue from Guardant360 and GuardantOMNI, two liquid biopsy products it offers to oncologists and other professionals. The company continues to expand its sales of these products. During the second quarter that ended June 30, its total revenue increased by 23% to $66.3 million. Guardant Health’s precision oncology testing revenue

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Tampa Bay Rays head to ALCS, crash party of big-market teams

Tampa Bay Rays head to ALCS, crash party of big-market teams

How’s that for a narrative shift?

“We might as well ruin their day up there in Connecticut,” said Rays reliever Pete Fairbanks, referring to ESPN’s headquarters in Bristol (ESPN won’t be broadcasting any of the ALCS games or the World Series). “We’re fine with it. We love it. We’re a good ballclub and we’re trying to go out there and win no matter how big the market is for the team we’re playing across.”

They swept the Toronto Blue Jays out of the wild-card round. Next they’ll take the noble role of battling the Astros. But the ALDS, the way it ended, was a true reflection of how odd and effective these Rays are.

It took five games to best the New York Yankees, who Fairbanks called ESPN’s “golden child,” who turned to Gerrit Cole, their $324 million ace, in Game 5. It took, really, a gutsy bullpen plan and Mike Brosseau’s late homer off Aroldis Chapman. Brosseau, undrafted in 2016, was nearly hit in the head by Chapman’s 101 mph fastball in September. Both benches cleared then, showing Tampa the unfamiliar space of tabloids and Internet debate. Then Chapman, on a $48 million contract himself, was beat by Brosseau on the 10th pitch of an eighth-inning at-bat Friday, a shot that chased the Yankees and swirled the Rays’ dugout into a mosh pit.

To get there, they used Nick Anderson, a late-inning reliever, for eight outs between the third and fifth. Fairbanks and Diego Castillo each pitched two frames behind him. Brosseau was the hero of an unbelievable ending. It was all very Rays, and now their run continues.

“Are you surprised?” Anderson asked, countering a question about using high-leverage relievers in early innings. “That’s kind of like the Rays way: Switch things up, do something a little different.”

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The 3 Most Important Stock Market Crash Statistics You’ll Ever See

The 3 Most Important Stock Market Crash Statistics You’ll Ever See

This year has exposed investors to some of the wildest volatility on record. The unprecedented uncertainty created by the coronavirus pandemic caused the benchmark S&P 500 (SNPINDEX: ^GSPC) to lose 34% of its value in only 33 calendar days. For context, it’s taken an average of 11 months for previous bear markets to reach a decline of at least 30%.

In addition to one of the most brutal stock market crashes in history, investors also witnessed a ferocious rally from the March 23 low. It took less than five months for the S&P 500 to hit a new all-time high from the bear market low, which is also a record.

With COVID-19 far from gone and the U.S. about to enter the heart of flu season, the question has been raised if this roller coaster ride could continue. History would certainly seem to suggest that additional volatility, with even another stock market crash, is possible.

But should another stock market crash or correction occur, there are three extremely important statistics you’ll want to keep in mind.

A person circling and drawing an arrow to the bottom of a stock market crash on a chart.

Image source: Getty Images.

1. Stock market corrections happen, on average, every 1.84 years

One of the most important things to realize about stock market crashes and corrections is that they’re extremely common. I know it might feel like the investing powers that be are specifically trying to smite you and your nest egg at times, but pullbacks in equity valuations are the price of admission to the greatest wealth creator on the planet.

Since 1950, the S&P 500 has undergone 38 official stock market corrections — official in the sense that the decline reached an unrounded 10% from a recent closing high. This works out to a correction of at least 10%, on average, every 1.84 years. Of these 38 corrections, nine have

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