Every economic downturn has its own idiosyncrasies. But just because the next economic crisis (hopefully) won’t involve subprime mortgages and high energy costs, that doesn’t mean investing lessons can’t be learned. Take a look at this chart of the 30 DJIA members’ year-to-date performance (courtesy of Bespoke Investments). Notice anything?
That’s right: People have to shop and eat. So Walmart (WMT) and McDonald’s (MCD), the two marquee sellers of cheap stuff and food, have thrived. The defensive stock story is a common recession theme, but it was clearly a winner this time, as long as you went with the lowest-priced retailers with the most recognisable brands.
The discounters’ closest competitors saw more mixed results. Burger King (BKC) is down 11% YTD (which still currently beats the S&P 500’s 13% fall), while Target (TGT) is up more than 9%.
Business Insider Emails & Alerts
Site highlights each day to your inbox.