Stocks to buy

Market legend Jeremy Grantham has just sounded the alarm that the market is in a super bubble, and it isn’t good news for bulls hoping for a turnaround. He says that several factors will lead to an ultimate bloodbath in both stock markets and housing prices, predictions that investors have met with much anticipation.

The market is unpredictable, and it’s hard to know when stock prices will go up or down. However, if an expert investor makes a prediction, then you should definitely pay attention because their insights can help protect your investments from any potential harm.

The world of finance has many ups and downs every day, but one thing is guaranteed in this environment: the need for preparedness!

Whether buying land before prices skyrocket over time, creating emergency funds using savings accounts so they’re ready whenever life throws us curveballs or purchasing the right kind of stock to protect again a market downturn.

If you want to put every foot right and ensure you are prepared in case of any economic downturn, here are seven stocks that need to be in your back pocket in case Jeremy’s prediction of the super bubble comes true.

DIS The Walt Disney Company $113.44
SBUX Starbucks $88.42
AAPL Apple $155.58
BRK-B Berkshire Hathaway $282.60
PG Proctor and Gamble $139.41
WMT Walmart $136.45
HD Home Depot $282.29

Disney (DIS)

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The Walt Disney Company (NYSE:DIS) is one of the best investments around. The stock has done well regardless of the market and will continue to do well, regardless of any super bubble burst on the horizon.

Even if the market crashes, investors will still flock to Disney because it is a safe haven. In recent years, the company has faced challenges such as Covid-19 and the financial crisis of 2008, but it has always bounced back stronger than ever.

Thanks to its strong brand and reputation for quality, Disney is one of the most resilient companies in the world.

Despite the broader macroeconomic headwinds, Disney’s share price has been surprisingly resilient. This is largely thanks to the success of the company’s streaming service, Disney+. Launched in 2019, Disney+ has already amassed over 152.1 million subscribers by the end of fiscal Q3, becoming a major force in the streaming wars.

In addition, Disney had renewed its focus on its direct-to-consumer strategy, an initiative that was already underway before the pandemic struck. These moves show that Disney is adaptable and willing to change with the times. That makes Disney a safe investment over the long term, even amidst these turbulent times.

Starbucks (SBUX)

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Starbucks (NASDAQ:SBUX) is one of the most successful brands in the world. It has been able to weather recessions and other economic downturns better than most companies. There are several reasons for this.

Starbucks has a very loyal customer base. These customers are willing to pay more for their coffee than they would at a cheaper chain. This means that Starbucks can still count on its customers to keep spending even in tough times.

Starbucks also has an efficient business model. It sources its coffee beans from all over the world and then roasts them in its own factories. This allows the company to keep costs down and maintain a high level of quality control.

Finally, Starbucks is an expert in marketing and branding. It has built a strong association with luxury and sophistication, making it resistant to economic fluctuations. In short, Starbucks is a super successful brand that is here to stay.

Starbucks is expecting big things for the 2022 fiscal year. The coffee giant forecasted a 13% increase in revenue, bringing the total to $32.9 billion. This growth is due in part to Starbucks’ expanding customer base and initiatives such as its digital transformation strategy.

Its legendary founder Howard Schultz is also helping groom the incoming CEO, another sign indicating that its position is secure.

Apple (AAPL)

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Apple (NASDAQ:AAPL) has the ability to keep prices high while still maintaining consistent profits. Apple does this in part by having an extremely loyal customer base that is willing to pay a premium for Apple’s products.

In addition, Apple has designed its ecosystem of products to work best in conjunction with one another, creating a sticky ecosystem that keeps users locked into Apple’s products. As a result, it has maintained high prices and still generates healthy profits.

Over the past few years, Apple has shifted its focus from hardware to services. This is largely due to the fact that services are much more profitable than hardware from a margin perspective.

The company is still dominated by iPhone sales, with 49% of the its revenues accounted for in Q3 FY2022. However, “wearables, home, and accessories” and the services segment were two of the other major contributors to Apple’s latest quarterly earnings.

This trend is likely to continue in the future as Apple continues to invest in its services businesses. Apple Music, iCloud, and the App Store are all examples of Apple’s service offerings that have seen tremendous growth in recent years.

Berkshire Hathaway (BRK-A, BRK-B)

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Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a large, diversified company with a history of strong financial performance. It size and diversification help to insulate the company from economic downturns and sector-specific problems.

The company is led by Warren Buffett, one of the most successful investors in history. Buffett has a proven track record of generating superior returns for shareholders over the long term.

Berkshire Hathaway has a conservative approach to risk management. The company does not take on excessive debt or make speculative investments. As a result, Berkshire Hathaway can better weather economic storms and capitalize on opportunities when they arise.

In addition, Berkshire Hathaway has a shareholder-friendly culture. The company does not engage in share buybacks or pay dividends. Instead, Berkshire Hathaway reinvests all of its earnings into the business, which allows the company to compound its growth over time.

Finally, Berkshire Hathaway is an exceptional value creator. The company has a long history of acquiring businesses and growing them successfully. As a result, Berkshire Hathaway has consistently delivered superior returns to shareholders.

For these reasons, Berkshire Hathaway is an attractive investment option for long-term investors looking to hedge against a super bubble.

Proctor and Gamble (PG)

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Proctor and Gamble (NYSE:PG) is a safe stock to invest in regardless of the economic climate. It produces many items that are essential no matter what the economy is like.

Proctor and Gamble have so many different products that there will always be a demand for at least some of them, no matter the state of the economy.

Plus, Proctor and Gamble has a strong track record of dividend growth.

It has increased its dividend for 66 consecutive years, and is a dividend aristocrat. It has an annual dividend yield of 2.61%. Proctor and Gamble is a great dividend stock for income investors seeking stability and income growth.

Walmart (WMT)

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Walmart (NYSE:WMT) is a company that has long been a great investment due to its enviable dividend payment history and its ability to perform well regardless of inflationary pressure.

It has consistently paid quarterly dividends since 1974 and has increased its dividend payments ever since. Walmart’s strong performance in the face of inflation is due to the company’s efficient supply chain and pricing strategy.

Walmart’s supply chain is able to source goods at low prices. And Walmart is able to pass these savings on to consumers.

As a result, Walmart is able to maintain high sales volumes even when inflation is driving up the prices of goods. In addition, Walmart’s dividend payments are well-protected against inflation.

Due to inflation and the risk of a super bubble bursting, it can be difficult to find investment opportunities that provide a level of security. Walmart offers strong income stability, as well as the added safety that comes with diversifying your portfolio.

Home Depot (HD)

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Home Depot (NYSE:HD) is a leading home improvement and construction product retailer, providing both DIY and professional customers with a wide range of products and services.

The company has been investing heavily in technology in recent years, which has helped improve store efficiency and drive sales growth.

Revenues and profits are up this year, and the company also offers a great dividend yield, making it one of the best investments for long-term investors.

Home Depot is a well-run company with good growth prospects, and its strong dividend yield makes it an attractive investment for income-seeking investors.

Home Depot is a company that has seen success in the recent past, and it looks poised to continue this trajectory into the future. The firm has an impeccable balance sheet and strong operating momentum, two things the markets love.

The company’s financials are stable, and its business model is sound. Furthermore, Home Depot has a proven track record of success. Given all of these factors, Home Depot is a safe investment for your portfolio if the super bubble bursts.

On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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