Trump Slump: 3 Defensive Stocks To Buy Now

The recent stock market correction driven by Trump tariff threats (call it the Trump slump, if you will) has caused some of the more cautious investors out there to rotate into more defensive names and assets. Undoubtedly, it’s hard to keep your cool when every Trump comment sends the Dow tanking by triple-digit or even a quadruple-digit amount of points, especially if you’re an older investor who’s closing in on retirement.

Even for long-term investors, the uncertainty and volatility are unsettling, to say the least. As S&P 500 price targets come down while recession odds rise, it can feel not only comforting but pretty smart to ditch stocks for bonds, gold, or even cash.

And while it’s tempting to get off the roller-coaster ride before fiscal policy uncertainty takes a big bite out of consumer spending and corporate investment, I think there’s relative value and stability to be had with some defensive stocks. Here are a few stocks that may be able to help you ride out the Trump slump going into April.

Berkshire Hathaway

Berkshire Hathaway (NYSE:BRK-B) has delivered applaud-worthy gains so far this year, with more than 16% gains year to date. Meanwhile, the S&P 500 is down just shy of 4% over the same period. As we approach the start of the second quarter, I think Berkshire’s relative outperformance could carry on.

Undoubtedly, Warren Buffett has been a major seller of stocks in recent quarters, adding to the cash pile, which has swelled to record levels. Though it’s unclear where Berkshire will direct the cash pile, they have ample options as the market rout continues. Indeed, there’s comfort to be had in Berkshire with such a mountain of cash in the face of one of the most volatile market environments in years.

While Buffett and Berkshire are worth paying up for, the current multiple seems rather stretched, at least in my opinion, with shares trading at 1.75 times price-to-book (P/B). Berkshire’s lack of buybacks since last May could signify Buffett views shares as a tad pricey. Either way, Berkshire is a defensive to keep a close watch on as it has its moment to really outshine the broad market.

Walmart

Retail behemoth and top consumer staple blue-chip Walmart (NYSE:WMT) hasn’t been able to escape the pull of the Trump slump, with shares down close to 18% from recent highs. Undoubtedly, the stock’s valuation may have been just one of many reasons why the recession-resilient name is under so much pressure.

Despite the slide, Walmart seems equipped to deal with a recession or stagflation. It’s won ample market share amid an inflationary past few years. And as more consumers seek to save money, Walmart seems poised to continue winning as it embraces new tech to enhance its convenience and value proposition. 

So, what’s next for Walmart? A generative AI chatbot? With the recent release of “Wally,” which aims to help merchants, Walmart has effectively punched its ticket to the AI race. Though not much is known about the chatbot, I am convinced that the company stands out as one of the biggest retail beneficiaries of this AI revolution. The stock trades at 35.5 times trailing price-to-earnings (P/E) — expensive, but maybe it deserves to be, given where we’re at (high recession risks) and all it stands to gain as it taps further into AI tech.

Apple

Finally, Apple (NASDAQ:AAPL) and its massive cash flow stream could be a “lower-risk way” to bet on AI while shares are down 17% from their highs, at least according to a top analyst over at Evercore ISI, who referred to the Cupertino-based giant as a “tech staple.” They also cited “excitement around DeepSeek” as another reason to hop aboard Apple despite its recent delay of AI features — I couldn’t agree more.

Every seller of Apple shares may be forgetting about what DeepSeek means for tech and AI investments as a whole. Personally, I think DeepSeek suggests having the lead in AI doesn’t necessarily entail an economic moat. In my view, Apple can take its time with the AI feature rollout as the cost of compute stands to be lower with time. 

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