Five Companies that May Be Recession-Proof




While it may be a tough road ahead for many companies that are bracing for what some experts predict will be the next recession, five corporations are sitting pretty, with not much to worry about as the fiscal cliff closes in. According to Wall Street 24-7 these companies are safe bets for investors who are looking for products immune to economic hardships.

Anheuser-Busch (BUD) If there’s one thing a financial meltdown won’t slow down, it’s America’s beer drinkers. The brewery behemoth’s sales actually grew as the country spiraled into a recession in 2008, CNNmoney reports With shares around $90, Anheuser-Busch has $144 billion market value, and is still growing through acquisitions.

McDonald’s  (MCD) Investors can always rely on the golden arches to come through when times are hard and pocketbooks are thin. With its highly popular dollar menu, it’s no surprise that McDonalds proved to do well through the recession.  With a $92 billion market value, Its 3.4% dividend yield trumps most food and dining stocks.

American Water Works  (AWK) The water-supply business is a not-so- surprisingly stable industry. American Water Works, the largest water utility in the country, is currently at 6.5 billion and is expected to grow more if it makes acquisitions or if it privatizes more municipal-owned water operations. The share price is at about $37.25 and the 52-week high is $39.38.
Dollar Tree  (DLTR) This one is bitter sweet, as it may not reflect positively on the economy if consumer spending increases at dollar stores around the country. Regardless, this discount store giant was a prime example of a company and stock that held up during the recession.  Dollar Tree trades around $48.00, and the consensus target of $54.33 implies upside of about 13% from the current share price.

Pfizer  (PFE) One of the nation’s leading pharmaceutical companies is predicted to continue strong this year, regardless of election outcomes, or a wider degree of health care coverage under Obamacare. In a not-so-stable economic environment, a stable industry like pharmaceuticals, with wide profit margins and  large payoffs, is a safe bet for investors. Pfizer’s dividend of about 3.4% and its $25.50 share price offer an implied total return of about 8% to the $26.86 consensus price target. Read more at Wall Street 24-7

ROMNEY SLAMS DEFENSE CUTS  The Mitt Romney who showed up to last Wednesday’s debate hasn’t slowed down and continues to slam the President on defense cuts scheduled to take place at the beginning of next year. At a campaign stop today at the Virginia Military Institute, Romney slams sequestration, asserting that the United States cannot help its allies or defeat its enemies in the Middle East “when defense spending is being arbitrarily and deeply cut,” Politico’s Austin Wright reports.  Read more at Politico

WASHINGTON POST- TAX CUT HOLIDAY MUST END  The Washington Post editorial board says extending the payroll tax cut would harm the U.S.’ fiscal credibility. “The tax cut was adding to the federal deficit each year. To extend the cut once again risks converting a temporary stimulus into a permanent feature of the tax code, so embedded in the public’s expectations that it becomes impossible to undo.”  Read more at The Washington Post

IMF: DO SOMETHING! Not convinced that members of Congress are doing anything effective to reduce the chances of sending the country over the fiscal cliff and possibly tumbling into the next recession, International Monetary Fund’s First Deputy Managing Director David Lipton told Reuters that the “United States needs to do more to show it is trying to address the expiring tax cuts and automatic spending reductions that will hit early next year unless Congress acts.


CANTOR CAUGHT FLIP FLOPPING After House Majority Leader Eric Cantor’s Democratic challenger Wayne Powell accused the Majority Leader of flip flopping on his position of sequestration, the nonpartisan political fact checker Politifact jumped on the case and found that Cantor had indeed changed his position and distanced himself “from a situation he helped create. We rate that a full flop.”











Global Recession Risk Rises
Wall Street Journal
TOKYO—The global economy risks skidding toward recession just three years after pulling out of the previous one, the International Monetary Fund warned, adding that fighting a renewed world-wide downturn will be much more complex than it was in 2009.
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Wall Street Journal
Singapore may avoid recession for now: PM Lee
Channel News Asia
WELLINGTON, NEW ZEALAND: Prime Minister Lee Hsien Loong says Singapore should brace for slower growth ahead, even as a technical recession may be avoided for now. Speaking at the end of his official visit to New Zealand on Tuesday, Mr Lee told ...
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Recession forces Italy to up 2012 borrowing target
Reuters
MILAN (Reuters) - A deeper-than-expected recession will force Italy to sell more bonds and bills this year than planned, a senior Treasury official said, presenting an even steeper funding challenge for the world's fourth-biggest debtor. In an ...
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Global Recession: What To Invest In?
Seeking Alpha
Guess what? The United States economy is "the brightest spot in the world economy." This assessment comes from the latest Brookings Institution-Financial Times tracking index. This is with the United States growing at an average rate of about 2.0 ...
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Analysis: Cities hit by recession ask voters to approve more debt
Chicago Tribune
Many of these roads, bridges, dams, water and sewer plants serve major metropolitan areas, but therecession left many cities struggling to pay for capital projects and services. Elected leaders are wary of asking voters to approve more borrowing ...
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UK left recession in third quarter, NIESR says
The Guardian
Britain's struggling economy left recession in the third quarter of the year, expanding by a healthy 0.8% as it bounced back from the diamond jubilee shutdown, according to the latest estimates from the National Institute of Economic and Social ...
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The Guardian
Five Companies that May Be Recession-Proof
The Fiscal Times (blog)
While it may be a tough road ahead for many companies that are bracing for what some experts predict will be the next recession, five corporations are sitting pretty, with not much to worry about as the fiscal cliff closes in. According to Wall Street ...
See all stories on this topic »
Recession 2013? IMF Warns That Global Economic Slowdown Is Getting Worse
Huffington Post
Recession 2013? IMF Warns That Global Economic Slowdown Is Getting Worse. Reuters | Posted: 10/08/2012 11:48 pm EDT Updated: 10/09/2012 1:35 am EDT. reddit stumble · Share on Google+.Recession 2013. Get Business Alerts: Sign Up. Follow: ...
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Logan: Recession no excuse for substandard childrens' services
Irish Examiner
However, Ms Logan criticised public bodies for using the recession as an easy excuse for not providing proper services, adding that many of the cases are not related to money. Industrial relation issues and the stock answer of 'insufficient resources ...
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Recession-hit Nevadans still favour Obama
Independent Online
Las Vegas - Last October, President Barack Obama mounted a makeshift podium on La Placita Avenue, in a Las Vegas subdivision hard hit by foreclosures. As TV cameras whirred, he pledged to do “everything in my power to help stabilise the housing ...
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