What does "flight to safety" mean in investing?

Flight to safety refers to investor behavior during uncertain or turbulent market periods, when they move money from riskier investments (like growth stocks or emerging markets) to safer assets that historically maintain value during downturns. These safer investments typically include consumer staples, utilities, gold, and government bonds. The assets in this Market Fear collection are specifically chosen because they tend to benefit from this investor behavior.

Why are consumer staples companies considered defensive stocks?

Consumer staples companies make essential products that people need regardless of economic conditions - things like food, beverages, household items, and personal care products. Demand for these necessities remains relatively stable even during recessions, as consumers might postpone buying a new car or taking vacations, but will still purchase groceries, toilet paper, and toothpaste. This consistent demand helps these companies maintain relatively stable revenue and earnings during economic downturns.

How do utility stocks provide protection during market downturns?

Utility companies provide essential services like electricity, water, and natural gas that households and businesses need regardless of economic conditions. Most utilities operate as regulated monopolies with predictable revenue streams and are required to provide their services even during economic hardships. Their stable cash flows typically allow them to pay consistent dividends, making them attractive to investors seeking income and stability during market turbulence.

Why is gold considered a safe-haven investment?

Gold has been valued as a store of wealth for thousands of years and often performs well during times of market stress, inflation concerns, or geopolitical tension. Unlike paper currencies, governments cannot print more gold, which helps preserve its value when currencies weaken. Investors typically turn to gold when they're worried about economic stability or seeking to diversify away from stocks and bonds. The gold mining companies in this collection provide exposure to gold prices while also operating as businesses that can generate profits and sometimes pay dividends.

What is a dividend yield and why does it matter for defensive stocks?

Dividend yield is the annual dividend payment divided by the stock's current price, expressed as a percentage. For example, a stock priced at $100 that pays $3 in annual dividends has a 3% yield. Many defensive companies in this collection have consistent dividend payment histories, providing investors with regular income regardless of stock price fluctuations. During market downturns, this income can be particularly valuable, offering returns even when stock prices aren't appreciating. Higher yields can also provide a cushion against price declines, as the dividend income partially offsets any drop in share price.

15 handpicked stocks

Market Fear

When markets get shaky, these stocks stand strong. Our professional analysts have carefully selected companies known for their stability during uncertain times, focusing on essential goods and services that people need regardless of economic conditions.

Han Tan | Market Analyst

Published on June 18

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Procter & Gamble Company, The

Current price

$152.21

A leading consumer goods company providing essential household products with consistent demand.

Coca-Cola Company, The

Current price

$66.00

A beverage giant with a powerful brand and global distribution network that provides reliable performance.

Walmart Inc.

WMT

Current price

$101.65

As a discount retailer, it often sees increased traffic as consumers become more price-conscious during recessions.

NextEra Energy, Inc.

NEE

Current price

$77.85

Newmont Mining Corp.

NEM

Current price

$85.99

Colgate-Palmolive Co.

Current price

$78.31

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+3.96%

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About This Group of Stocks

Our Expert Thinking

During market turbulence, investors often seek safety in stable companies. This collection focuses on businesses that provide essential products and services with consistent demand regardless of economic conditions. These defensive stocks typically outperform during downturns while preserving capital.

What You Need to Know

This group includes consumer staples companies selling everyday necessities, utilities providing essential services, and gold mining stocks that traditionally serve as safe havens. These businesses tend to have steady revenue streams and often pay reliable dividends even when the broader market struggles.

Why These Stocks

Each company was selected for its leadership position in defensive sectors, strong fundamentals, and history of resilience during market downturns. These aren't necessarily high-growth stocks, but rather companies with proven ability to weather economic storms while continuing to deliver value to shareholders.

Group Performance Snapshot

3.96%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 3.96% over the next year.

10 of 15

Stocks Rated Buy by Analysts

10 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Shelter From The Storm

When markets tumble, these defensive stocks historically maintain their value better than most. They could be your portfolio's lifejacket during choppy market waters.

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Dividend Warriors

Many of these companies have impressive dividend track records, paying shareholders consistently even during recessions. This income stream could be especially valuable when other investments falter.

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Economic Warning Signals

As uncertainty grows in global markets, these stocks are attracting smart money looking for safety. Their rising popularity often signals that institutional investors are preparing for volatility.

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