E 3 Stocks To Buy In Case Of A Market Crash In 2021

2021 has started off as a confusing time for investors. The vaccine rollout has led to hope of an economic recovery and the markets have closed at new records. A second pandemic stimulus/relief package will help millions of Americans.

However, the emergence of a new coronavirus strain in the UK and the persistence of COVID-19 cases in the US are making market players wary of a crash that is just around the corner. What does one do when this is the case?

One looks at stocks that will be able to withstand a market crash. When the going is good, it is time to take a relook at one’s portfolio and identify recession-proof stocks. Here are three stocks that should be able to withstand a recession in 2021:

Amazon (AMZN):

Amazon stock is trading at $3,160 levels currently but don’t let the high stock price throw you off. The e-commerce behemoth is on its way to becoming even bigger in 2021. It has benefited a lot from the pandemic and, according to reports, will end 2020 with 410 million sq feet of fulfillment centers, up 80% from 2019. It announced five new fulfillment centers in the last two weeks of December 2020.

These centers are key to Amazon’s expansion in the grocery delivery space. The grocery market in the US is worth around $700 billion. If there is a market crash and a recession in 2021, grocery and discretionary items will be in demand and Amazon will be in the perfect position to fulfill these customer needs.

Its Prime membership is a huge point of focus for Amazon. The company has grown its prime membership by around 12.5% in 2020. These members across the world will all depend on Amazon in 2021 to fulfill a lot of their e-commerce spends.

Amazon’s move into the e-medicine space with the launch of Amazon Pharmacy will see it disrupt yet another market. It is likely that Amazon will cut into the market share of companies like Walgreens and CVS.

Analysts have given the stock a target of $3,819, an upside of almost 20% from current levels. This stock is an easy buy in a bad market. If the stock price is too much for you to invest at one shot, you could consider going in for a fractional ownership system that would help you pick up the stock over an extended period of time.

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The Good Doctor 1 year ago Member's comment

Good read, thanks.