European markets began the week under pressure on Monday, with the Stoxx 50 falling 1.77%. US stock markets are also expected to see sharp losses on Tuesday after the three-day holiday break.
Investor caution increased after President Donald Trump said over the weekend that several European countries will face fresh tariffs. These tariffs are set at 10% from February 1 and rise to 25% from June, unless an agreement is reached for the United States to buy Greenland.
Trump has become more forceful in his stance on Greenland, arguing that gaining control of the autonomous Danish territory is essential for US national security.
In response, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland have sent military troops to the region. The move appears largely symbolic but seems to have triggered Trump’s response, as he believes these countries are playing a very dangerous game.
For now, European governments remain firm in refusing to sell Greenland and are preparing a coordinated response to the new US tariffs that are due to take effect in about ten days.
Put simply, the trade war has returned in a dramatic way, and financial markets are reacting quickly.
A full-scale trade conflict between the United States and Europe would sharply raise recession risks. That would carry serious consequences for markets, especially given stretched valuations in some sectors and weakening investor confidence in popular themes such as AI.
8 Recession-Resistant Stocks to Prepare for Turbulent Times
In this environment, it makes sense to add some protection to portfolios by focusing on stocks that tend to perform better during market stress or even a recession.
To identify such stocks, the predefined Investing.com “Recession-Resistant Stocks” screener offers several tools, including a prebuilt screener designed to find out recession-proof stocks.
Like other preconfigured tools on Investing.com, this screener lets you find stocks that match a fixed set of conditions with a single click.
Below are the criteria used in this search.
Currently, this preconfigured screener identifies 36 US stocks. We therefore refined the search to retain only the most undervalued stocks.
To do this, we used InvestingPro Fair Value, which combines several widely used valuation models. We then selected stocks that show upside potential of more than 25% based on this Fair Value estimate.
This allowed us to narrow down the list of opportunities to eight stocks:
More specifically, these US stocks are currently undervalued by 25.7% to 90%, in addition to displaying a profile that suggests good resistance to recessions.
For those looking for opportunities in other sectors, the Investing.com screener offers several pre-configured searches, allowing you to search for stocks that meet a set of criteria based on various sector strategies with just one click:
The screener also includes ready-made searches focused on defensive stocks, small-cap companies, dividend-paying shares, and other widely followed investment themes.
Please note that some of these pre-configured searches are available only to InvestingPro subscribers with a PRO+ plan.
If you’re not yet an InvestingPro subscriber and want to explore the opportunities mentioned in this article, along with access to InvestingPro tools, you can now take advantage of the New Year’s sale by clicking the button below.
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The features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a wide range of tools that enable investors to always know how to react in the stock market, regardless of market conditions. These include:
AI-managed stock market strategies that are re-evaluated monthly.
10 years of historical financial data for thousands of global stocks.
A database of investor, billionaire, and hedge fund positions.
And many other tools that help tens of thousands of investors outperform the market every day!
Tens of thousands of investors are already using InvestingPro to outperform the market. Why shouldn’t you?
Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.
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