2 Recession-Proof Stocks to Buy With a Better Credit Rating Than the U.S. Government
In 2011, following the difficulty caused by the Great Recession, S&P Global Ratings (formerly Standard & Poor's) downgraded the long-term credit outlook of the United States from its highest designation of AAA to AA+, citing budgetary issues. Fitch once again downgraded U.S. credit in 2023 and Moody's recently suggested it's contemplating a similar move. Debt and other fiscal issues only worsened in recent years and the 2024 fiscal deficit ballooned to over $1.8 trillion.High credit ratings are not just handed out. In fact, only two U.S.-based companies maintain the coveted AAA rating from S&P. They may be a good place for investors to park cash as President Donald Trump attempts to shake up the global trade order with sweeping tariffs -- a situation that could turn into a long-lasting trade war if negotiations are not soon reached.See why Microsoft (NASDAQ: MSFT) and Johnson & Johnson (NYSE: JNJ) are two stocks that can successfully navigate the choppy waters of a potential recession and market turmoil.Continue reading
In 2011, following the difficulty caused by the Great Recession, S&P Global Ratings (formerly Standard & Poor's) downgraded the long-term credit outlook of the United States from its highest designation of AAA to AA+, citing budgetary issues. Fitch once again downgraded U.S. credit in 2023 and Moody's recently suggested it's contemplating a similar move. Debt and other fiscal issues only worsened in recent years and the 2024 fiscal deficit ballooned to over $1.8 trillion.
High credit ratings are not just handed out. In fact, only two U.S.-based companies maintain the coveted AAA rating from S&P. They may be a good place for investors to park cash as President Donald Trump attempts to shake up the global trade order with sweeping tariffs -- a situation that could turn into a long-lasting trade war if negotiations are not soon reached.
See why Microsoft (NASDAQ: MSFT) and Johnson & Johnson (NYSE: JNJ) are two stocks that can successfully navigate the choppy waters of a potential recession and market turmoil.
