Market selloffs can be unsettling for even the most experienced investors. Here’s the hard part: While the reasons for selling are different every time — think about the past five years, which have included pandemics, high inflation, recession fears, and geopolitical tensions — there’s always a smart-sounding reason to sell. You can fight this temptation by holding quality stocks, which are designed to perform better during turbulent times. Again, you don’t have that amount of stocks, even with a basket of these “sleep well at night” stocks, that can completely eliminate portfolio volatility. Instead, this group can give you peace of mind that after the storm, these businesses will emerge, hopefully stronger than before.
What Makes a “Sleep Good Night” Stock
So, what qualities should a “sleep well” stock have? In short, we want great names that generate consistent, flexible cash flows regardless of market cycles…
