The stock market is down today on the news of Barack Obama’s reelection. The market will go up and down day by day, but some stocks will, on average, do better than others. Here are four companies that I think will do well during the adverse economic climate I expect for the next few years.
Amazon AMZN NASDAQ Amazon sells a lot more than books these days. The last item I bought from them was a telescope. With the economy tight, folks will be looking for bargains, and as Amazon gets closer to next day delivery for many items, delay recedes as an issue in the potential buyer’s mind. And most of us can use online shopping to avoid sales tax.
Apple APPL NASDAQ Apple almost went bust as a computer company. They’ve become a giant by being a consumer electronics/entertainment industry company that also sells computers. Companies like RCA with its NBC entertainment subsidiary grew during the Great Depression. Apple is similarly poised for growth during the coming hard times. It’s too late to get in on the capital appreciation of the last decade, but it still looks like a smart buy to me.
Ruger RGR NYSE Ruger makes guns. Barack Obama makes gun owners and potential gun owners nervous. Ruger has seen outstanding growth and profitability for the past four years. Expect four more good years for Ruger.
Smith & Wesson SWHC NASDAQ See above.
No guarantees. YMMV.