But the latter isn’t entirely out of the question if consumers suddenly get hit with a wave of tariff-related price hikes. So let’s assume the worst and say a US stock market crash is coming. So which stocks might protect an investment portfolio?

3 ‘crash-proof’ investments?

No stock is ever truly crash-proof. Even if the underlying business continues to perform well while the wider market suffers, panicking investors often throw the baby out with the bathwater, sparking volatility, at least in the short term.

While unpleasant, this volatility does create lucrative opportunities for investors with cooler heads. And looking back to previous crashes and corrections, there are several S&P 500 stocks that have demonstrated their resilience.

As a discount retailer, Walmart (NYSE:WMT) often sees a surge in demand as consumers start hunting for bargains. In fact, we’ve already begun seeing early signs of this within the group’s latest results, which show strong like-for-like sales growth while more ‘premium’ peers fall behind.

Then there’s AutoZone (NYSE:AZO), a leading supplier of automotive parts and components. Regardless of economic conditions, people need their vehicles to get around and go to work. And since most consumers typically delay buying new cars during recessions, rising demand for spare parts for DIY repairs creates favourable headwinds.

And continuing the theme of non-discretionary spending, Procter & Gamble (NYSE:PG) is another S&P 500 stock with a knack for being resilient. Demand for its essential household brands such as Oral-B, Ariel, and Pampers tends to remain high, thanks to relatively stable sales of its healthcare, homecare, and babycare products.

Nothing’s risk-free

These three businesses appear to be well-positioned to deliver robust results in a post-tariff world. However, it’s important to recognise that none of them are guaranteed winners.

Walmart’s still susceptible to tariff-related impacts throughout its supply chain that could put pressure on margins. The company might be able to pass some of this cost onto consumers, but with its reputation built on being a cheap retailer, there’s a limit to this strategy, potentially harming earnings.

Procter & Gamble’s in a similar situation, where higher raw material prices could squeeze profitability. Even with strong brands, its ability to pass on costs could be limited by the rising number of cheaper private-label alternative products that shoppers can switch to.

As for AutoZone, the company could also encounter some issues. Consumers may opt to switch to public transportation if their cars stop working. The firm may also see a reduction in the frequency of non-essential repairs, creating some growth headwinds.

The bottom line

Each of these S&P 500 enterprises has a long track record of navigating through even the worst economic storms, including the global economic meltdown in 2008. Therefore, despite the potential challenges, investors concerned about a looming recession may want to consider investigating these businesses as a way to diversify their portfolios.

The post 3 S&P 500 stocks that could survive a stock market crash! appeared first on The Motley Fool UK.

With these performance figures in mind, anyone who invested £20,000 into an S&P 500 index fund roughly two and a half years ago is now sitting pretty on £35,000.

But given the shifting economic landscape in the US, can this momentum continue? And if so, how much higher could America’s flagship index climb?

Investigating forecasts

Based on the current macroeconomic landscape, the Economy Forecast Agency has projected that the S&P 500 could reach anywhere between 11,874 and 13,662 points by the end of September 2029. Compared to where it stands today, that’s a potential four-year return of 84%-111% before counting dividends.

Needless to say, it’s a pretty bullish forecast that could transform a £20,000 investment today into anywhere between £36,800-£42,200. Digging deeper, there are a variety of factors at play.

Even with economic and trade disruptions, corporate earnings have continued to remain relatively strong in the first half of 2025. At the same time, a more dovish tone has emerged from the Federal Reserve, hinting towards more interest rate cuts this year to spark more economic growth. And with further productivity gains expected to emerge from artificial intelligence (AI) investments, being bullish for the longer term doesn’t seem unreasonable.

However, as with all forecasts, nothing’s for certain. And this particular projection is definitely more optimistic compared to the 7,300-point target from Goldman Sachs, or up to 8,000 from JP Morgan. In terms of money, that’s the equivalent of £22,580-£24,745.

There’s concern that the ongoing uncertainty surrounding tariff trade policies could cause an economic slowdown. And if inflation continues to persist, further interest rate cuts could prove elusive, hampering the upward trajectory of the S&P 500.

The power of stock picking

Just because the index as a whole may disappoint, that doesn’t mean individual constituent stocks will follow in its footsteps. And by carefully picking potential winners, investor portfolios could still achieve robust gains even while the S&P 500 slumps.

A prime historical example of this is Walmart (NYSE:WMT). Regardless of economic conditions, demand for groceries is always resilient. After all, people still need to eat. And being a discount retailer, Walmart has the added advantage of attracting shoppers looking for bargains.

In 2025, the company continues to exhibit desirable defensive traits. Management’s optimising its supply chain with AI and automation, its e-commerce channel’s growing rapidly, and its discounting strategy has continued to steal market share from competitors this year. Pairing all this with its strong financial position and Walmart seems to be well-positioned to continue its current upward trajectory.

Of course, there are still risks to consider. Discounting takes a toll on profit margins, especially when inflation and tariffs are driving up costs. This impact is only compounded by competitive pressure from rivals like Amazon within the general merchandise categories.

Nevertheless, the group’s impressive track record makes it a risk worth considering, in my opinion.

The post Forecast: here’s what £20,000 invested in the S&P 500 could be worth by 2029 appeared first on The Motley Fool UK.

Uncertainty sparks concern

The major catalyst for the drop has come from uncertainty regarding President Trump’s tariff policies. In recent weeks, there have been announcements regarding import levies on Mexico, Canada, China and even the EU. Yet there have been subsequent rollbacks, exemptions for certain sectors and delays for some other applications. If there’s one thing that worries investors, it’s uncertainty.

As a result, some have decided to sell S&P 500 stocks to reduce their risk. Some of the hardest-hit shares are those in the car and agricultural sectors, which has been at the core of tariff chatter.

Looking ahead

Until we get some clarity on what’s actually going to happen with tariffs, I think the S&P 500 will continue to be volatile. Let’s say certain import levies do get introduced. At least in that scenario investors can then address which stocks to avoid and which have been oversold. So I don’t see the imposition of tariffs as being a negative for the S&P 500 overall. If anything, it will provide some certainty and allow us to move on.

In the long run, history shows me that the stock market should be higher several years down the line. But instead of buying the dip via an index fund, I’d prefer to be selective in what I buy.

One idea I like

One stock that I already own is Walmart (NYSE:WMT). It has been caught up in the recent fall, down 15% over the last month. Over the last year it’s up 42% though. I’m going to wait for some more clarity on tariffs in the coming weeks, but anticipate buying more within the next month.

It’s true that the company is partly impacted by tariffs, which is a risk going forward. It’s in the process of meeting with some Chinese suppliers to reduce pricing in order to combat the impact of the import tariff. It has the buying clout to strike a deal. And it doesn’t have major exposure to Mexico or Canada, so I’m not too concerned here.

The business has a proven track record of profitability over time. Q4 results showed revenue up by 4.1% versus the same period last year. Operating income jumped by 8.3%. Even though the firm is mature, it’s being smart, in “deploying capital toward the highest returns, using technology to enhance customer experience.”

So although I think it’s too early to buy the dip in the stock (and the S&P 500) right now, I’ll certainly be looking to do so within the next month.

The post At what point should I buy the dip on the S&P 500? appeared first on The Motley Fool UK.

With that in mind, here are three S&P 500 stocks I’d buy for my portfolio today. 

Market leaders

The US equity index is stuffed full of world-beating technology companies such as Apple (NASDAQ: AAPL). 

This is the first stock I’d buy in the index. I think the company has a fantastic competitive advantage as consumers are, essentially, wired in to buy a new product from the business every couple of years.

Even though they’re more expensive than competitors, consumers are more than happy to upgrade because Apple’s products are well designed, work flawlessly and, to a degree, status-driven.

This is why the business can command substantial profit margins and generate a robust free cash flow. 

Despite its positive qualities, Apple’s growth shouldn’t be taken for granted. Competitors are constantly nipping at its heels. Also, an economic downturn may push consumers to move away from its expensive products. 

S&P 500 champion

I think one of the best consumer goods stocks in the S&P 500 is PepsiCo (NYSE: PEP). The food, beverage and snack company has its fingers in every corner of the consumer goods market. I think this diversification gives it a fantastic edge. 

Over the past six years, through a combination of acquisitions, organic growth, and price increases, the company’s earnings have grown at a compound annual rate of around 7%. This isn’t the fastest growth around, but I think it’s impressive for a slow and steady defensive consumer goods business. 

There are few UK stocks that own brands as recognisable around the world as Pepsi, which is why I’d buy this S&P 500 company over any UK-listed peer. 

Challenges the enterprise may face as we advance include staying relevant in an era where consumers are becoming increasingly health-conscious. Rising costs may also weigh on profit margins. 

Global retailer

The final S&P 500 stock I would buy for my portfolio is Walmart (NYSE: WMT). As one of the world’s largest retailers, the company is another defensive play. However, I think it’s also a growth play. 

In recent years, the company has been investing heavily in its online operation. And it’s just starting to yield results. As we advance, I expect this side of the business to become a more significant part of the overall enterprise.

So while Walmart might seem like a sleepy defensive play, I think it could have the potential to be a growth investment. 

That said, its online business is still relatively small compared to the likes of Amazon. Fighting off this online giant and defending its market share won’t be easy for Walmart and is probably the biggest challenge the enterprise faces. 

The post 3 S&P 500 stocks to buy appeared first on The Motley Fool UK.

But many, myself included, believe that a combination of rising populations and emergence of the middle classes make these territories a potential goldmine. Indeed, the excellent outlook for these regions was underlined this week when US retailer Wal-Mart Stores (NYSE: WMT.US) announced plans to open a further 115 outlets across Asian powerhouse China during the next three years.

This will take the number of the firm’s stores in the country to almost 530, while Wal-Mart is also planning to expand its majority-controlled Yihaodian.com online grocery service as well as embark on a large number of store revamps. This comes even though net sales in China fell 0.7%
in the three months to January.

Internet sales on the march

Such measures should give investor confidence in Marks and Spencer (LSE: MKS), for one, a huge shot in the arm. The British retail institution has been busy in recent years expanding its product offerings in Asian marketplaces, even though sales in China have also disappointed more recently.

The firm announced this month plans to close five of its stores in Shanghai in a bid to reshape its expansion strategy in the country, where it currently operates 15 outlets. But Marks and Spencer has vowed to redeploy these stores in other major metropolitan areas like Beijing and Guangzhou, while it has also enjoyed huge success in China’s e-commerce in recent times and has rolled out new services on major retail sites such as Tmall.com and Jd.com.

Consumer products bouncing back

Like Marks and Spencer, household goods giants Unilever (LSE: ULVR) and Reckitt Benckiser (LSE: RB) also carry terrific brand power to attract the gaze of international consumers — indeed, the latter’s Durex contraceptive brand is the most popular label in China. And both companies are consistently innovating across their broad product bases to keep their products flying off the shelves.

Unilever reported “more stable conditions” in the country earlier this month as de-stocking has ended, a phenomenon which helped drive total developing market turnover 5.4% higher during January-March. The company sources almost 60% of group revenues from emerging nations.

And Reckitt Benckiser also reported “strong and broad-based growth” in China during the first quarter, and total sales in developing regions — geographies that are responsible for around a third of the company total — edged 6% higher during the period.

Brand power promises bountiful gains

Adding to the effect of wider cyclical problems in China, drinks giant Diageo (LSE: DGE) has also been whacked by anti-extravagance measures introduced by the Chinese government during the past year.

However, the company is extremely bullish over its prospects in the country, exemplified by its decision to purchase 100% of Shuijingfang during the summer of 2013, by some distance China’s largest baijiu brand. Of course Diageo could not have foreseen the devastating effect of Beijing’s drive against corruption, but in the coming years I believe a backdrop of rising disposable income levels should push volumes higher again.

Indeed, the distiller is ploughing vast sums into developing its suite of ultra-popular premium drinks in the country to cotton onto rising spending power, and successfully unveiled its Haig Club scotch label last year. From Johnnie Walker whiskey through to Smirnoff vodka, Diageo has plenty of blue-ribbon brands with which to attract cotton onto the rising popularity of luxury goods in the coming years.

The post 115 Reasons To Buy Marks and Spencer Group Plc, Unilever plc, Reckitt Benckiser Group Plc And Diageo plc appeared first on The Motley Fool UK.

The once-mighty Tesco (LSE: TSCO) has fallen far, with rapidly declining market share, eroding margins and an accounting scandal that has seen the company half in value.

But can the supermarkets survive and is Tesco a buy?

ASDA has been the stand-out performer of “The Big Four,” the only one holding out against the unrelenting discounters. But the tide could be turning. Last Wednesday ASDA reported its first fall in LFL sales, down 1.6% in Q3.  

Today I’m going to roll up my sleeves and ask some questions about ASDA.

How did ASDA manage to survive sales decline for so long, can it continue to thrive in the discounting era and, if it can, is there anything Tesco can learn from it?

A Gap In The Market

People’s shopping habits are driven primarily by two factors: value and convenience.

ASDA’s strategy is built on the premise that customers want a better range and quality to choose from than those offered by the discounters, but for a lower price than the traditional supermarkets.

While investors eagerly await Tesco’s strategy under David Lewis, ASDA has been implementing this anti-discounter strategy for an entire year. In November 2013, the business committed £1bn to lowering prices and £250m to increasing quality.

Value and Convenience

People are flocking to the discounters because they are cheaper. It is that simple, and ASDA is determined to compete with them on price. It is owned by Wal-Mart (NYSE: WMT.US), and the scale of this global business can be leveraged to procure goods at cheaper prices, an advantage not shared by any of the other UK supermarkets.

ASDA also owns a company called International Procurement and Logistics, which focuses on building relationships directly with producers. This cuts out several supply chain steps, including the supplier’s mark-up. It has saved £190m since 2009, significant savings which is helping to fund the current pricing strategy.

While Tesco can’t rely on a Wal-Mart, it has considerable scale itself and could go down the route of sourcing directly from producers to support lower prices.

Convenience

While the discounters currently offer better prices, the supermarkets have a more diverse offering, allowing you to buy everything under one roof. Even if you are part of a growing trend of shoppers avoiding cramped supermarkets, you can still get your weekly shop hassle-free from Asda or Tesco online.

ASDA expects £3bn sales annually from their website by 2018, with Click and Collect forming a significant part of this while Tesco already has a market-leading online presence with £2.5bn sales.

In 2009, only 29% of UK shoppers bought food three times or more a week. Now 49% of us do and no one wants to go to a supermarket for a small shop. Convenience stores are predicted to take in roughly a quarter of all UK food sales by 2019 and both companies are moving into the space. Tesco added 128 stores to its already impressive network in 2013 to total 1,867 convenience stores. ASDA has disappointingly not committed much to the convenience store trend, with Clarke vowing to explore the area over a five year period beginning last year.

While ASDA seems to have the upper hand on value, Tesco is leading the way on convenience and future shopping trends.   

Tesco more convenient, ASDA cheaper

But who has the most comprehensive strategy?

I believe its ASDA. Value is clearly driving shoppers the most these days, and ASDA has spotted an unaddressed gap in the market.

However, I’m confident that Tesco’s strength in online and convenience gives it a solid platform if it can reduce prices.  

Am I willing to back Tesco as a winner of this price war right now? No. But I believe Tesco could co-exist with ASDA in that space between supermarkets and discounters, even if they must take a significant hit to margins to do so.

The post What Can Tesco PLC Learn From Wal-Mart Stores, Inc.-Owned ASDA? appeared first on The Motley Fool UK.

When you look at UK retail spending, almost 55p in every pound is spent on groceries, so this is undeniably a booming sector. But which supermarket should you invest in? The beleaguered Tesco (LSE: TSCO)? The steady pair of hands, Sainsbury’s (LSE: SBRY)? Walmart  (NYSE: WMT.US)-owned ASDA? Morrisons (LSE: MRW) or Ocado (LSE: OCDO)? We’ve taken a Foolish look…

Sainsbury’s

There’s no doubt that Sainsbury’s shareholders have a right to feel smug just now. Although like-for-like sales have fallen for two quarters in a row, this was by a mere 1.1% – a smaller drop than many of its rivals. Not only that but its pre-tax profit for the year to 15 March rose more than 16% to £898 million.

It has focused on quality rather than discounting, but is now investing into the discount brand Netto to scoop a “share of the action”. Some analysts have questioned whether this move will simply encourage the discount sector to further undermine established brands like Sainsbury’s. However, others argue it will widen the retailer’s customer base and help future-proof it against the growth of the discount stores.

ASDA

In the 12 weeks to 25 May, ASDA grew its market share from 17% to 17.1%, according to research from Kantar Worldpanel. Meanwhile, Tesco, Sainsbury’s and Morrisons all lost market share.

In fact, the supermarket was the only large grocer to grow its market share year on year. Walmart investors may hope this means the supermarket can simultaneously compete with the discounters and the other large grocers.

Morrisons

Following a disastrous set of first-quarter results, Morrisons staged a fight-back against the discount brands. It has formed a £1 billion plan to drastically cut prices, bringing down the cost of many everyday essentials by up to 17%.

However, independent analyst Louise Cooper warned earlier this year that the company was only just catching up with other supermarkets by developing online shopping and loyalty cards, “let alone the changes happening now”. She accused the company of a lack of urgency in its efforts to win back market share.

Ocado

Online-only grocer Ocado has just released an encouraging set of first-half figures. It reported a pre-tax profit of £7.5 million for the six months to 18 May, which is a vast improvement on its performance last year when it saw a loss of £3.8 million.

And Ocado is also busily growing its business. Its specialist online pet store Fetch is reportedly doing well, sales of its own-label range have increased by more than 50% and it’s planning to launch a specialist kitchen and home website later this year.

Tesco

What about the behemoth of UK supermarkets, Tesco? Performance has been undeniably poor just recently with its worst-ever decline in quarterly sales announced earlier this month. And that follows its disastrous forays into the US and accusations that it neglected its customers at home. But could now be the time to buy and gain on a storming recovery?

Chief executive Philip Clarke pledged to invest a further £200 million into cutting prices, but some analysts said that simply didn’t go far enough to win back customers from the discounters – after all, it hardly compares to Morrisons’ £1 billion plan.

The post Which Supermarket Deserves Your Investment: Tesco PLC, ASDA, J Sainsbury plc, Wm. Morrison Supermarkets plc Or Ocado Group PLC? appeared first on The Motley Fool UK.

https://youtu.be/2LkMR5Pdgu0

The post Tesco PLC And ASDA Are Moving In Different Directions: Which Will Win? appeared first on The Motley Fool UK.

In simple terms, he likes to invest in long-term trends. One long-term trend is that people are buying more and more from supermarkets and less from corner shops, the high street and department stores. Why trek over to the high street when all the essentials can be bought during your weekly trip to the supermarket?

So the logical conclusion would be to invest in a supermarket. If you are an American investor like Buffett, then the logical choice would be Walmart, which is the dominant — and most profitable — player in the States.

Buying power and agility

But Walmart is already huge ($238bn market cap). How much bigger can it grow, particularly in the States? When a company reaches this size and scale, it is difficult to grow fast. And it is not particularly cheap (P/E ratio of 14, dividend yield of 2.5%).

Compare this with Tesco. This is a smaller company (a mere fifth of the market cap of its US competitor) with more of its sales overseas. The company is big enough to have massive buying power, but it is small enough to still grow rapidly, and to be agile in what can be fast-moving markets.

Plus its presence in many emerging markets is still nascent, so there is still the scope for much more growth. This doesn’t mean that there aren’t bumps along the way. Tesco’s foray to Walmart’s home ground of the States was a clear failure. But I think the company has drawn a simple but key lesson.

The partnership approach

It is not easy to go it alone in markets where there are already entrenched competitors. This, I think, is why Tesco is now seeking out partners and established brands in many of its ventures.

It is expanding into the restaurant business in the UK. But rather than create a brand from scratch, it has bought up the established and successful Giraffe restaurant chain.

To expand in China, rather than plough a lonely furrow it has joined forces with CRE, already a big player in China’s retail business. The concept is simple: rather than trying to build a brand from scratch, which is difficult and rather hit and miss, invest in an already established and successful brand.

Then, just by scaling up these brands, the company builds growth.

Yet, despite Tesco’s greater growth potential, it is actually cheaper than Walmart (P/E ratio of 10, dividend yield of 3.9%). Is this reason enough for Buffett to venture across the Atlantic to buy Tesco? I think so.

What’s more, this comparison of the rival supermarket titans gives us some perspective about whether Tesco is a buy or not. Although the company is not as cheap as when the share price slumped last year, the company is, in my view, a strong buy.

Good long-term investments

Tesco is the type of share that we at the Fool think is a good long-term investment. It’s the sort of company that we expect to grow and steadily increase profits — and thus its share price and dividends — for many years into the future.

We have such confidence in this company that we have made it one of our “5 Shares To Retire On”. Want to learn what other companies we would recommend as long-term investments? Then just click on this link to receive our report, which is provided without obligation and completely free.

> Both Prabhat and The Motley Fool own shares in Tesco.

The post Why Warren Buffett Bought Tesco PLC appeared first on The Motley Fool UK.