Northrop Grumman (NOC), iShares Treasury Bond ETF (TLT) And Barrick Gold (GOLD) Are 3 of the Safest Stocks to Buy Now

A market correction can be unsettling for investors, but it also presents opportunities to buy high-quality stocks at a discount. In March 2025, the S&P 500 officially entered correction territory, falling more than 10% from its February peak, while the Nasdaq Composite declined 14% from its December high. This downturn has been driven by uncertainty surrounding President Donald Trump’s tariff policies, concerns over consumer spending, business investment, and broader economic instability.

While history shows that corrections are normal and temporary, the volatility can make it difficult to navigate. However, certain safe-haven stocks tend to outperform during market downturns, offering stability, strong balance sheets, and consistent returns even in uncertain conditions. 

In this article, I’m going to highlight three of the safest stocks to buy during a market correction. In owning these stocks or other similar names in highly defensive industries, investors can ensure that their portfolio will be able to weather whatever economic storm clouds could be on the horizon, and position their portfolios for long-term growth once the market recovers.

Northrop Grumman (NOC)

First on the list of safe stocks to own during a market recession is Northrop Grumman (NYSE:NOC). A leading defense contractor providing some of the latest state-of-the-art airplanes to the U.S. military and its allies, Northrop Grumman continues to benefit from strong government spending at home and abroad. And while various European nations are now ramping up spending (and directing most of this spending to their own home-grown defense companies), the sheer amount of demand for military equipment should provide tailwinds for this sector more broadly. 

Indeed, unless defense spending does see significant cuts from the Trump administration (as some have speculated), Northrop Grumman is likely to remain a very defensive pick in this environment. The company’s very stable revenue streams, low volatility, and strong financial position allow long-term investors in NOC stock to benefit from some very consistent underlying trends.

And with a valuation of around 17-times trailing and forward earnings, there’s certainly reason to believe that further valuation expansion could take this stock to new highs, particularly if demand within this sector continues to remain strong. 

Northrop Grumman also boasts a strong balance sheet with manageable debt and robust cash reserves, allowing for continued investment and reliable dividend payments. With 21 consecutive years of dividend growth, Northrop Grumman provides investors with consistent income, even in turbulent times. Furthermore, its $91.5 billion backlog and involvement in projects like the B-21 bomber position it for long-term stability and growth, reinforcing its status as a recession-resistant stock.

iShares 20+ Year Treasury Bond ETF (TLT)

The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) is considered a strong defensive asset due to the fact that this particular exchange traded fund focuses on an area of the market many investors often don’t pay much attention to – longer duration bonds.

In times of turmoil, investors tend to flock en masse to asset classes that are negatively correlated to equities. Longer duration bonds do carry more risk than shorter-dated bonds, but also more security for investors looking to lock in a particular rate of return for a specific period of time.

One way to think about this asset class is that investors can effectively lock in a 4% or higher rate for 20 or more years for a portion of their portfolio, and avoid their equity portion potentially declining for a period of time, waiting for their equities to rally. It’s worth noting that there was a “lost decade” in the Nasdaq following the dot-com bubble implosion, in which bond investors who locked in higher interest rates ahead of the bubble crash vastly outperforming investors over that 10 year period. 

Of course, it’s unclear if we’re headed into a similar situation here, but the view that TLT is a safe-haven investment that benefits when investors seek security during economic downturns is one that should drive significant demand at least in the short-term, which could make for a great holding for those with an even shorter investment time frame as well.

Barrick Gold (GOLD)

Barrick Gold (NYSE:GOLD) is a strong defensive stock during market recessions due to the company’s status as a leading gold miner. As many investors know, gold miners are heavily exposed to the price of gold, with their balance sheets benefiting from rising gold prices (affecting their top and bottom lines), with their costs denominated in dollars. Thus, as the price of gold rises, the respective leverage ratios of these miners improves, as does their cash flow profiles.

Thus, it should be no surprise to many investors that GOLD stock is up more than 20% on a year-to-date basis, over the same time frame most major indices have entered into correction territory. Gold prices have historically surged during downturns, such as the 2008 financial crisis and the COVID-19 market crash, providing strong returns for gold miners like Barrick.

For those who believe some sort of similar scenario could be on the horizon (or at least the odds of such a situation materializing have increased), this is a top stock to consider right now. Barrick’s strong balance sheet and strategic partnerships help sustain growth, while its consistent dividend payments provide a reliable income stream during market volatility. 

Although gold prices fluctuate, Barrick Gold remains a strategic hedge against economic uncertainty, making it a great safe stock to own during a recession

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