3 Stocks That Will Save You Next Time the Market Crashes

No one likes to lose money, and no one likes to lose money particularly quickly. But that’s exactly what’s happened lately with the TSX Composite down by 9% at one point over two short and feverous weeks.

Meanwhile, if you were holding a sizable portion of your portfolio in marijuana stocks, your experience was likely worse.

Canada’s marijuana darling, Canopy Growth Corp. (TSX:WEED) lost as much as 40% of its value during that stretch, but Aphria Inc. (TSX:APH), viewed by many as the “conservative” play within the space, lost even more than that — at one point it was more than 45% off its highs.

Even the HORIZNS MARIJUNA LF CL A UNT ETF (TSX:HMMJ), an ETF that holds a diversified basket of marijuana holdings, still managed to lose 35%, although it has since recovered some of those gains.

While it seems like the dust has cleared and markets are starting to recover for now, it will only be a matter of time again before we get another market crash — and next time it could be worse.

With that in mind, you might want to consider “buckling up” in the meantime with these three companies that are virtually recession-proof.

Goldcorp Inc. (TSX:G)(NYSE:GG)

In times of crises, people seem to flock to gold as a store of value. Gold bullion has been looked at this way for over 5,000 years, so as far as this theory is concerned, at least there’s safety in numbers.

Goldcorp is the world’s largest gold company and a low-cost producer, meaning the B.C.-based company has fared better than most, as prices of gold and precious metals have languished since 2011.

Additionally, Goldcorp has lagged the recovery of the broader market over the past few years, making it that much more of an attractive investment today.

Royal Bank of Canada (TSX:RY)(NYSE:RY)

Royal Bank is Canada’s largest bank and is, in fact, one of the largest financial institutions anywhere in the world.

In recent years, the company has been growing its wealth management business globally. Not only does this provide diversification benefits to the bank’s core Canadian operations, but it also shields the bank from declines in interest rates in times of crisis.

Telus Corporation (TSX:T)(NYSE:TU)

When the economy takes a turn for the worse, it typically means businesses are laying off workers, and households are cutting back on spending.

It’s easy to understand how this could affect companies like Magna International Inc. and even Warren Buffet’s investment in Home Capital Group Inc., but it’s a pretty good bet that people won’t be cutting back on using their smartphones.

While some may complain about the supposed epidemic of smart phone addiction, it’s certainly welcome news for telecoms like Telus.

Telus is the newer, younger version of telecoms in Canada. While the company is smaller than more established incumbents BCE Inc. and Rogers Communications Inc., that also means it has a longer runway to growth standing ahead of it.

3,985 stocks listed between the TSX & TSXV, but here are the 5 we'd buy right now!

Overwhelmed by how many public companies there are to choose from in Canada? Motley Fool Canada Director of Research Iain Butler has you covered. Once a month, Iain and the rest of our team at Stock Advisor Canada reveal their five favourite Canadian stocks for new money now.

Considering they've walloped a "stuck in the mud" TSX by 10% over the past 4 years with truly life-changing winners like Shopify (up 236%, more than tripling your money), you'll probably want to have your front-row seat reserved when our next five "Best Buys Now" are released - exclusively on behalf of Stock Advisor Canada members.

To make sure your name is on the list, just click here now... before the curtain is lifted without you.

Fool contributor Jason Phillips has no position in any of the stocks mentioned. Magna is a recommendation of Stock Advisor Canada.

Just Released!

Motley Fool CEO Tom Gardner Goes Live and Tells Hong Kong Investors To Buy This Canadian Darling Tech Stock…

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.