Interest rates have already been cut once this year and more could be on the way. And concerns about the economy potentially entering a recession are rising. The good news is that investors can protect themselves by investing in strong and stable businesses that could weather the storm, should it happen. Below are three stocks that could help protect your portfolio.
Merck (NYSE: MRK) is a great example of a company that's not likely to see a significant drop-off in the demand for its products during a recession. Healthcare is one area where expenditure is not likely to decrease significantly, whether it is consumers, hospitals or third-party payers, demand for medicine and health services should continue to be strong.
The company has provided investors with good, stable growth, as the stock has risen more than 30% over the past five years. Although sales haven't exactly been soaring, increasing by less than $3 million in the last three years, one thing the company has been able to deliver is consistency. Profits have been more than $2 billion in each of the past four years, rising to over $6 billion in 2018.