Four safety stocks to steady your portfolio

These names are undervalued, have durable businesses and ample unrealized upside potential, ideal in uncertain times

Vikram Barhat 8 October, 2019 | 9:25AM

Lifebuoy

The final quarter of the year has had a dreadful start with markets moving sharply lower last week. The slump wiped out the measly gains blue-chip stocks had made over the past one year. Worse yet, a slew of disappointing data -- slowing U.S. manufacturing activity, the trade war, interest rate uncertainty, signs of economic slowdown, contraction in corporate earnings -- suggests things may get worse before they get better.

The one-year returns for S&P 500 and Dow Jones indices are reflecting a loss of 0.50% and 2.3%, respectively, as of Oct 3. The recent swoon, coupled with growing fears of recession, may be a harbinger of deeper declines and panic selling. Prudent investors may want to position their portfolios defensively and look to add stocks that provide bigger value and a margin of safety.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Anheuser-Busch InBev SA/NV ADR55.79 USD0.13
Capital One Financial Corp64.67 USD2.26
Ingredion Inc78.50 USD3.34
Pfizer Inc38.45 USD0.16

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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