4 Safe Haven Stocks To Buy In This Volatile Market

Stocks suffered the highest on Aug 5 after China allowed its currency to fall against the dollar to the lowest recorded in the last 11 years. The announcement of removing tariffs from certain products like clothing and cell phones by United States Trade Representatives did not bring much hope to investors. However, indexes rose slightly after days in red.

In fact, the United States has not lifted the ban on the blacklisted Huawei, which impacts U.S. chip stocks and China has no signs to restart import of agricultural goods. Both the United States and China are not willing to conclude trade war any time soon. Hence, the cloud of uncertainty keeps looming over Wall Street.

Further, geopolitical events across the globe are slowing down the economy even more. Protestors have shut down Asia’s busiest airport, Hong Kong, demanding higher democracy. The protestors claim, China reinterpreted the tenets of basic law as having “complete jurisdiction” on Hong Kong, though this extended part of China has officially been given the right to “own democracy” since independence.

The Argentine stock market dropped more than 30% and the peso closed 15% lower on Aug 12. The fall was a result of the business-friendly President Mauricio Macri losing the primary election with a greater margin than expected.

Additionally, the slowdown in GDP growth could be seen as there was a rise of 2.1% in the second quarter compared to 4.1% a year ago. Though high purchases from domestic consumers boosted the GDP, the rise was not high due to the prevailing trade war preventing any trade from China.

The Yellow Metal Reigns

A cloud of geopolitical tension, low-rate environment, and economic slowdown looms over the stock market, pushing investors to park money in safe haven assets like gold. The yellow metal has always been a hedge in a tough economic environment due to low risk and scarcity.

On Aug 12, gold prices rose to $1,500 per ounce, the highest recorded in the last six years. Gold prices rose by 4% in the first week of August and nearly about 17% in 2019.

Other Safe-Haven Options to Buy

The best safe-haven options to buy are utilities and real estate investment trusts (REITs). These stocks are dividend payers indicating that they are fundamentally strong, have a steady cash flow and are unaffected by stock market gyrations. Also, these are defensive players as they have consistent demand irrespective of any cyclical change or stock market turmoil.

Buy These 4 Stocks Now

Given that these aforesaid areas are poised to gain from this market turmoil, investing in stocks from these sectors seems prudent. We have selected four stocks that flaunt a Zacks Rank #1(Strong Buy) or 2 (Buy).

Kinross Gold Corporation (NYSE:KGC) is a publicly traded gold mining company. Its mines are located in the regions of South America, North America, West Africa and Russia. Kinross’ expected earnings growth rate for the current year is 140%. The Zacks Consensus Estimate for current-year earnings has improved 100% over the past 60 days. The company holds a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Alamos Gold Inc. (TSX:AGI) is a publicly traded gold mining company. The company has three operating mines in North America. Alamos’ expected earnings growth rate for the current year is 280%. The Zacks Consensus Estimate for current-year earnings has improved 58.3% over the past 60 days. The company holds a Zacks Rank #1.

American States Water Company (NYSE:AWR) is a publicly traded utility conglomerate. It provides water service to customers in Northern, Coastal and Southern (NYSE:SO) California. The company also distributes electricity to customers in the Big Bear recreational area of California. AWR’s expected earnings growth rate for the current year is 18.6%. The Zacks Consensus Estimate for current-year earnings has improved 2.5% over the past 60 days. The stock has a dividend yield of 1.31%. The company holds a Zacks Rank #2.

Mid-America Apartment Communities, Inc. (NYSE:MAA) is a publicly traded company focusing on the acquisition, selective development, redevelopment and management of multi-family homes throughout the Southeast and Southwest United States. Mid-America Apartment’s expected earnings growth rate for the current year is 3.6%. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 60 days. The stock has a dividend yield of 3.1%. The company holds a Zacks Rank #2.

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