The US stock market has been crashing this year due to concerns over Donald Trump’s tariffs. Top blue-chip indexes such as the Dow Jones and Nasdaq 100 have entered a correction phase, while recession probabilities have increased.
Donald Trump is set to unveil his Liberation Day Tariffs in the coming week. This could lead to a long-term trade war, which may cause a crash of American stock prices. The article examines the defensive stock to purchase ahead of Liberation Day.
Buy defensive stocks before Liberation Day
Despite a possible trade war, some sectors are likely to do better than others. Healthcare is the most prominent sector, since government and private programs such as Medicare and Medicaid cover most of the cost.
Utility and consumer staples are also defensive sectors. Enterprise Products Partners, Procter & Gamble, Berkshire Hathaway and AbbVie are some of the top stocks to invest in.
Enterprise Products Partners
EPD is a good defensive stock to purchase before Liberation Day. The company is a major player in the oil and gas industry. It offers logistics services to many of the largest firms.
EPD has a diverse range of activities in the energy sector, such as gathering, transporting, and processing.
This stock will be unaffected by tariffs, as Americans continue to use oil and gas. It also has a higher dividend yield than government bonds, at about 6%. Analysts expect that its stock price will increase from $34 up to $36.
Procter & Gamble
Procter & Gamble (P&G), also known as P&G to its many fans, is another stock that you should buy when Trump begins his trade war. Dividend king, it has endured most crises in history, such as the Cold War, the First and Second World Wars, Covid and the Last Trade War.
P&G has a number of well-known global brands, including Pampers, Ariel and Downy. They have a large following and will do well even if tariffs are introduced. The company also has many factories located in the US. This means that they will be less affected by tariffs. The average PG share forecast has risen to $178 from $168.
Berkshire Hathaway
Berkshire Hathaway is another blue-chip stock worth $1 trillion.
Berkshire has invested in many American companies including Apple, American Express Bank of America Coca-Cola Moody’s VeriSign and Davita. These are all blue-chip companies in their own rights, and many of them won’t be affected by Trumps tariffs.
Coca-Cola drinks, for example, will be purchased regardless of tariffs. Moody’s is no different.
Berkshire also makes a great defensive stock due to its huge cash balance of over $334 billion. It has enough cash to buy opportunistic stocks.
AbbVie
AbbVie, another defensive blue-chip stock is worth buying and holding. This large company is known for its drugs such as Skyrizi, Rinvoq and Humira. Humira sales are down due to its patent expiring. Skyrizi is a medication used for treating psoriasis, Chron’s Disease, and other skin conditions.
Analysts predict that AbbVie will maintain its growth in the future. Analysts estimate that AbbVie’s revenue will increase by 5.4% to $59.36 Billion this year and by 8.0% to $64.2 Billion in 2026.
Rinvoq, Skyrizi and AbbVie Stock Analysis: Read More
Buy other defensive stocks
Blue-chip companies like Goldman Sachs JPMorgan and Morgan Stanley are also good defensive investments. Other good companies to buy include Unilever and Colgate Palmolive.
The post, Top 4 defensive stocks you should buy ahead of Liberation Day and hold them may change as new information becomes available
This site is for entertainment only. Click here to read more
