Stocks that can survive the crash

Stocks that can survive the crash

2020-09-09 • Updated

2020 has proved that the market can crash without warning. When the coronavirus outbreak happened, the US benchmark S&P 500 slumped by 34% in the first quarter. After that, it surged to highs never seen before. That's because usually the stock market correction is followed by a bull market rally.

Surprisingly, on Thursday many stocks, led by the S&P 500, dropped significantly. It’s a bit too early to consider this case the beginning of the long correction. Whether the market falls or not, some stocks always remain interesting for investors.

AT&T

Most of you are probably familiar with the telecom giant AT&T, a well-known American multinational conglomerate, headquartered in Texas. According to its business model based on subscriptions, the company isn’t likely to be vulnerable to economic shocks, unlike its peers. Notably, the company is planning to unveil soon the cutting-edge 5G technology. In fact, the shift to 5G won’t come in a few days nor even in several months, it’s a long and costly process. However, the investment in AT&T will be a smart and strategic move. It wouldn’t double or triple your account but may generate decent profits without too much risk. Besides, this company is undoubtedly one of the most credible stocks as it is a dividend aristocrat, meaning that it has increased its payouts every year since 1985. It’s worth to mention that the company has been developing in the streaming service: AT&T owns HBO as a part of its WarnerMedia TV. The involvement in such an innovative sphere also makes it more attractive to investors. The stock price has been fluctuating in a range between $29.00 and $30.0. The break above the top of its’ range will drive the stock to the next resistance at the next round number of $31.0. Otherwise, if it falls below the bottom of $29.00, the doors towards May’s low levels at $28.00.

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Visa

Another stock which would be wise to have in the portfolio is Visa. In fact, it is the most preferable payment processor in the USA. Moreover, the coronavirus has forced the whole world to avoid cash as it may spread the disease, which in turn has increased the usage of credit cards and online payments. An interesting fact that Visa doesn’t lend money to its customers, unlike most other financial companies. On one hand, if Visa decides to give loans, it will increase money flows in time of economic prosperity. On the other hand, abandoning this idea, it stays invulnerable to recessions and crises. As a result, Visa's profit margin constantly stays at or above 50%. Let’s look at the charts. The stock has recently reached the all-time high at $217.00 but then bounced off amid the current risk-off sentiment. The move below the recent low of August 14 at $196.00 will drive the price deeper to the strong support of $189.00, which it has failed to break a few times. Resistance levels are $208.50 and $217.00.

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