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The stock market is exhibiting elevated valuation risks, with the CAPE ratio recently reaching its second-highest reading on record.
This metric suggests equities are quite overvalued, a concern compounded by continued high inflation, the highest 10-year Treasury rate in nearly a quarter century, and a new Federal Reserve rate hike cycle.
Against this backdrop of growing downside risks, six companies have demonstrated a historical capacity to hold up during market turbulence: Berkshire Hathaway, Coca-Cola, Duke Energy, Johnson & Johnson, Realty Income, and WM.
During the 2022 bear market, these six stocks all outperformed the S&P 500, with several ending the year in positive territory.
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