Bear Market Stocks

Best Bear Market Stocks to Buy?

6 min read

Knowing what bear market stocks to buy when an economic downturn hits is important. Naked puts, put debit spreads and call credit spreads are great ways to make money in bearish markets. Commodities such as gold and silver $GOLD, consumer staples such as $WMT, $TGT, and $JNJ, and defense stocks such as $LMT and $GD are all great to look at when the market is in a downturn.

  1. Here are some good bear market stocks to buy:
  2. Gold stocks: typically, stocks like $GOLD move up
  3. Consumer staples like $WMT, $TGT, and $JNJ
  4. Defense stocks like $LMT and $GD
  5. Biotech stocks run at times, too depending on what’s causing the bear market

Since the market trades in cycles, there will be bearish markets. Many traders may not like bearish markets, but it’s a good thing.

Bear markets keep stocks from becoming so expensive the normal trader can’t afford them. The ebb and flow of a bull and bear fight is healthy for the market. Traders don’t have to be afraid of a downturn.

Bear Market Stocks to Buy

Bearish Markets

Bearish markets don’t last as long as a bull market. Learn how to trade the bear markets and find the right stocks, and you can still profit.

A recession or depression usually causes bear markets. When traders become pessimistic, prices fall. Different sectors stay consistent no matter what the market is doing.

These sectors have profitable stocks. Since sectors house multiple stocks, there’s always money to be made. Even if a stock is losing money, you can profit from that.

You must know how to trade bear markets, whether short selling or buying put options. Sectors such as utilities, telecom, healthcare, and consumer staples. These sectors stay strong in a bear market because even in an economic downturn, we use them. We’re paying our cable bills and cell phone bills.

We must pay our utilities and may need to see the doctor. The stocks in these sectors are always generating revenue. They may not skyrocket in a bearish market but are safe plays.


As mentioned earlier, different sectors stay strong in bear markets. These sectors contain stocks still making a profit in a down market.

Utility companies always have a stable income. They provide the most basic needs for households as well as businesses. Most of the profitable companies are located in the US and Europe. Some of the top companies are Duke Energy (DUK), National Grid (NGG), NextEra (NEE), and EDF, to name a few.

As always, it’s up to you as a trader to do your due diligence on any stocks you want to trade. Just because these tend to be strong stocks doesn’t mean it’s a sure bet.

Food and beverage companies like Coca-Cola or Chipotle can be bear market stocks to buy. People need to eat. That is never going to change. When the market shows conviction, look to the stocks with an income, no muck out blue chip stocks, too. Blue chip stocks have what it takes to handle a recession. They also have dividends and lower volatility. They stay steady, and you can pocket the dividend payouts.

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Bonds can be a haven for investors in a downturn. A bond is a fancy way of saying IOU that companies and the government use to fund their day-to-day operations.

Bonds are less likely to lose money in a downturn. If you have them in a portfolio, they help cushion the loss of any stocks you may have. Bonds pay a regular interest, so a steady stream of money is coming in.

Even if interest rates drop, a bond continues to pay out at a set price. There are many different types of bonds. If that interests you, research the different types to find the best.

Final Thoughts: Bear Market Stocks to Buy

A bear market isn’t going to sneak up on you. Take a look at the charts. Charts are so important in finding bear market stocks to buy. The patterns tell you what direction the market is headed. There are large patterns like descending triangle patterns. If you see that pattern, be extremely aware of a bearish bias coming.

Zoom in to the large triangle pattern and see what is there. Do you see head and shoulders patterns or rising wedge patterns? You can even zoom in further and see the small patterns such as shooting star patterns, falling three methods patterns, or indecision candles like spinning top candlesticks.

Candlesticks charts and patterns are there to give traders fair warning. Study them. Please get to know what they mean. Then you won’t be surprised when a bear market comes, and you can find bear market stocks to buy.

Bear market stocks to trade will always be easy to find. Put a stock scanner to good use. Learn the sectors that are stable in a bear market. Then, you’ll always be able to profit no matter the market’s direction.

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