3 stocks I’d buy to feed the next bear market

A lot of investors fear bear markets and the potential losses they bring but as long-term investors, we know it’s inevitable that we will face a downturn at some point.

As such, for investors who fear volatility, it may be wise to diversify and anchor a portfolio with companies that could do well in a recession. With that in mind, here are three stocks that I would buy to beat the next bear market:

Bapcor Ltd (ASX: BAP)

During a downturn, it’s likely that many consumers will choose not to buy a new car and continue using their old car. That car will need more frequent repairs and maintenance which works to the benefit of Australia’s premier provider of automotive parts, Bapcor.

Bapcor also has a strong balance sheet that could help it weather the storm during a recession.

Brambles Limited (ASX: BXB)

During a recession, many companies opt to cut costs as an alternative to protecting profits through revenue growth. Brambles is a global leader in its industry and with economies of scale that lead to significant cost advantages, it’s well positioned to outperform its competitors during a downturn.

The company’s global reach also makes it a good hedge against downturns that are specific to Australia.

InvoCare Limited (ASX: IVC)

They say nothing is certain except death & taxes and as the Australian market leader in funeral services, InvoCare’s revenues are fairly stable and reliable. If anything, the industry is likely to continue growing as the population grows and InvoCare could also benefit from consolidation within the industry.

With a PE ratio of 15, InvoCare also looks like good value given the overall quality of the business.

While I like the three stocks above, if you are looking beyond the next recession then I highly recommend that you learn more about this new technology.

Japanese Billionaire’s Prediction Will Give You Goosebumps

When a veritable investing and entrepreneurial genius speaks, it pays to listen.

In fact, he's now preparing a $100B "war chest" to invest entirely in this "terrifying" new technology, which could spell huge profits for investors.

Click here to learn about this technology and how you can profit!

Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of and has recommended Bapcor. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!