Jeremy Grantham is a legendary investor and pioneer of index fund investing and expects the sky-scraping stock market to come back to earth. This video didn't load, and we apologize for it.
You can see other videos from our team here. If you refresh your browser, or Jeremy Grantham says the next decline will be 'bigger and better' than anything in the U.S. history -- here are 3 of his safe haven stock picks Grantham recently told Bloomberg that investors who enthusiastically drove the stock market to new heights during a global recession are in for a shock. When the decline comes, it will probably be bigger and better than anything previously in the U.S. history, he warned. Grantham predicted the 2008 meltdown of the real estate market and the collapse of the dot-com. He is also in charge of $60 billion as the investment chief at the asset management firm Grantham, Mayo, Otterloo, so he is worth listening to. Before Grantham's predictions come true, let s look at a few safe-haven stocks in GMO's portfolio.
The performance of the stock, which is up about 30 per cent this year, suggests that the company is in strong financial shape, according to UnitedHealth's quarterly dividends, currently $1.45 per share. The insurance and healthcare leader is well-positioned to weather any long-term financial tumult as well. Americans will still need healthcare regardless of what happens to the economy. Millions of them are already UnitedHealth customers. UnitedHealth is a diversified company. In addition to its thriving insurance business, it also provides software and information technology to a number of clinics and hospitals. As the medical tech space continues to grow, so should the profits of UnitedHealth.
U.S. Bancorp is the parent company of the U.S. Bank, one of the country's largest banking institutions. If a stock market correction is expected to hammer investors finances, betting on bank stock might seem counterintuitive, but bank tend to do well in rising interest rate environments: As rates increase, the profit margin or spread earned by banks widens. Instead of turning itself into a casino through the kinds of risky derivative plays that have ruined some of its competitors in 2007 -- 2008, the U.S. Bancorp has focused on innovating and providing digital service for its customers. The increased efficiency and lower operating costs that result should be music to investors ears.
The stock of U.S. Bancorp has risen by 31 per cent since the beginning of 2021. If you're unsure about diving in at the stock's current levels, well-known investing apps allow you to buy fractional shares of Bancorp. Coca-Cola's dominance of soft drink market remains unmatched despite the push for more healthy food and beverage consumption. The company's offerings extend far beyond liquid sugar. Coke also sells popular bottled water brands Dasani and Smartwater, big-name juices like Minute Maid and Simply, and international coffee products Costa and Georgia. The company's profit margin, which has averaged 23.6 per cent over the last decade, makes Coca-Cola an interesting defensive play. That is largely due to Coke's ability to tinker with portion sizes and prices and having the capital to invest in greater productivity.
A faltering stock market shouldn't change any of those dynamics. Coke's quarterly dividends hit $0.42 this year, almost double what it was a decade ago. The stock of the company has gone up about 4% since the beginning of the year. Grantham says portfolios need protection from inflation, which hit a 31 year high in October. He said that inflation was the number one predictor of a market downturn since 1925. At times of high inflation, investors often turn to real assets, which tend to hold their value. It is because collectibles — diamonds, wine, fine art — are taking up an increasing amount of room in modern portfolios.
It doesn't require you to outbid a gaggle of millionaires at a stuffy auction house when you invest in fine art. A new platform allows you to purchase shares of modern masterpieces by artists like Andy Warhol, Banksy, and even Claude Monet without breaking the bank. This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it believes may be helpful to the reader. This article is not intended to be construed as advice. It is provided without any warranty of any kind.