With a recession possibly on the horizon, investors may want to consider acquiring stocks with strong balance sheets. According to a Reuters report, the Bank of Canada noted that the risk of recession shrunk. On the other hand, Morgan Stanley reported that U.S. recession risks were rising prior to the banking sector meltdown. It’s hard to imagine that bank runs and the failures of two major financial institutions assuage these concerns. Therefore, it’s well worth considering stocks with solid financials.
Further, an important component undergirding stocks with resilient balance sheets centers on participation. Here, we’re not talking about abandoning the equities market altogether. Rather, we’re simply considering adjusting portfolios to reflect certain realities. Each of the companies below have been screened for a minimum of 2:1 for quick and cash ratios. As well, none have long-term debt on their books. So, approach the coming storm with these stocks with strong balance sheets.
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