It’s been a non-stop party for Canadian investors, with an active bull market lasting for many years now. But, like all good things, it will eventually come to an end. You might be a little nervous about a big-time correction coming around the corner.
It’s time to prepare yourself with recession ready stock picks ASAP. Far too many investors are going to find themselves overexposed and unable to protect their gains and the wealth they have built through this bull market.
If you wait until the market begins to free fall, it’ll be too late. You’ll be forced to watch your wealth erode and will miss out on opportunities to increase your wealth.
Instead, look to these two recession-resistant stocks to secure your wealth, lock in your gains, and ride out any coming bear market.
Park Lawn
It’s hard to imagine an industry more recession-resistant than those servicing cemeteries, crematoriums, and funeral homes. Regardless of how the economy is doing, the natural cycle of life is going to continue.
Founded in 1892 and based out of Toronto, Park Lawn (TSX: PLC) has been a steady and consistent performer regardless of market swings and volatility. Currently trading at $29.03, market analysts have forecasted this stock to trade as high as $32.79 over the next 12 months due to a healthy earnings outlook.
This would represent a potential upside of 12.9% above the current stock value, more than enough of an increase to overcome bear market pressure that could be right around the corner.
Just two months ago, Park Lawn was recognized as an inaugural member of the TSX 30, a brand-new program that highlights 30 of the top-performing stocks over the last 36 months. There’s a lot of safety and security built into this stock pick, regardless of how the market moves, but it is particularly recession resistant.
Dollarama
The second-largest retailer of items valued at $4 or less in all of Canada, this Montréal-based retailer is naturally well positioned to capitalize on a market downturn and economic recession that has people looking to squeeze their budgets a little tighter.
Currently trading at $47.29, Dollarama (TSX: DOL) has seen its share value skyrocket by 171% over the last five years. This kind of growth will slow down with an economic recession and a change in market direction, but this dividend-paying stock looks like it’s going to hold its legs, even as the markets get more bearish.
A 2% rise in quarterly profits indicate that this company still has plenty of room to grow and expand beyond the more than 100,000 stores located across every province of Canada. Sales and revenue numbers could jump higher if the market takes a tumble and Canadians start to search out bargain price goods from this retailer.
Summary
You’ll want to be as prepared as possible to protect the historic gains the market has provided over the last decade. The two stock picks highlighted above are savvy moves strategic investors can use to prevent their wealth from washing away when the market shifts gears in 2020.
