There is no denying that this has been a challenging year for both new and veteran investors. The benchmark S&P 500, 126-year-old Dow Jones Industrial Average, and growth-focused Nasdaq Composite have all dropped by 24%,19%, and 34% since hitting their all-time closing highs. This implies the Nasdaq and S&P 500 are in a bear market.

Even worse, the United States is becoming more vulnerable to a recession. The first-quarter GDP of the United States fell by 1.5%, and according to the Federal Reserve Bank of Atlanta’s most recent prediction, second-quarter economic growth will be zero percent. With the Fed preparing to tighten monetary policy aggressively during historically high inflation, there’s an actual chance that the stock market will tumble further.

The good news is that there are a few of particularly safe stocks out there that can assist patient investors in navigating the dangerous waters of the market. What follows are two of the most secure stocks to buy if the United States enters into a recession.

AT&T

The most secure stock for beginning investors is AT&T, the telecom behemoth. Take note that AT&T is paying out a 5.7 percent yearly return, which will help to reduce historically high inflation.

The attractiveness of telecom stocks is that their operational cash flow is usually clear. For the last two decades, having a smartphone and access to internet and wireless services has essentially become fundamental necessities. This implies that economic downturns will unlikely result in significant increases in mobile churn rates.

AT&T is also working on its largest organic growth catalyst, the 5G revolution. The company is investing hundreds of millions of dollars to upgrade its wireless infrastructure to accommodate 5G download speeds. It’s expected that we’ll see a multiyear device replacement cycle culminating in a significant rise in data use, and AT&T’s sweetest wireless margin comes from data.

AT&T also split off content arm WarnerMedia in April, which was subsequently combined with Discovery to form Warner Bros. Discovery, a new media company entirely. When this deal was completed, AT&T received a $40.4 billion payment that it will be able to use to lower its outstanding debts and enhance financial flexibility.

Energy Products Partners

Oil and gas midstream operator Enterprise Products Partners is a rock-solid stock that would be safe to invest in if the United States enters a recession. The company’s 7.9% yield almost entirely compensates for the highest inflation reading we have seen in four decades.

Although investing in energy equities may not seem appealing, Enterprise Products Partners is not a driller. Within the energy complex, it operates transmission pipelines, storage facilities, and refining capacity. Fixed-fee or volume-based contracts are typical for energy intermediaries like this, which implies they have little or no exposure to rapidly fluctuating crude and natural gas spot prices.

Another thing to note about Enterprise Products Partners is that, even as the March 2020 pandemic resulted in a historic decline in oil demand, the firm’s distribution coverage ratio (DCR) did not fall below 1.6 during the height of the pandemic.

The factor is calculated by dividing the amount of cash flow available to investors by the cost of converting that money into a cash dividend. This company’s baseline yearly payout, which has increased for 23 years in a row, was never at risk since it never fell below 1.

Ethereum (ETH) has increased nearly 153,000% since its inception in 2015 and is presently priced at $4,892 as of November 2021. With the cryptocurrency market as a whole falling, however, the world’s second most valuable digital asset is now trading for $1,077 per token.

A $5000 per token price would result in a 364 percent return from today, and it would mark a new high for this popular cryptocurrency. Let’s look at why such a ambitious goal is feasible, as well as what could get in the way.

A large ecosystem of use cases 

Smart contracts are a form of digital contract that runs on the Ethereum blockchain, which Bitcoin does not have. A smart contract is a type of computer program that executes if certain criteria are fulfilled, allowing two persons who don’t know each other to interact and transact with one another without the need for a trusted third party. It was an historical breakthrough that resulted in Ethereum being dubbed the world’s first decentralized computer.

Ethereum, on the other hand, has created actual-world applications thanks to its practicality and flexibility. Decentralized apps (dApps) are being developed to challenge a variety of sectors. An example of a major category of dApps is non-fungible tokens (NFTs) and decentralized finance (DeFi) protocols, both of which are quite popular.

Before the recent market downturn, services such as Uniswap, a decentralized exchange for purchasing and selling cryptocurrency, and Compound, a lending and savings platform similar to a traditional bank, were becoming increasingly popular in the DeFi space. Despite the fact that the market for NFTs has dried up considerably, this technology’s potential is tremendous.

Ethereum, of course, is the most popular of the blockchains when it comes to these emerging use cases. It has by far the most active developers working to improve the network, which is a significant competitive advantage in the cryptocurrency space.

Watch out for its competitors 

Investors looking for Ethereum to reach $5,000 per token should be aware of “Ethereum killers,” which are blockchains attempting to address the same issues as Ethereum. The two blockchains in this category, Cardano and Solana, are both trying to improve upon Ethereum’s shortcomings in terms of speed and scalability.

Ethereum, like Bitcoin, uses a proof-of-work consensus algorithm. To validate and add more transactions to the network, it requires a large amount of computational power. It’s not only energy intensive, but it’s also slow. Today, Ethereum can only handle about 13 transactions per second.

The proof-of-stake algorithm used by Cardano and Solana is called PoS. This energy-efficient method allows real owners of the tokens to stake their assets and validate transactions. It’s much quicker and more environmentally friendly.

Fortunately, Ethereum has a solution in the works. The Merge will raise the network’s capacity by adding a new beacon chain to the mix, at which point the whole network will be proof-of-stake. Shard chains may also be included as early as 2023. This implies that additional blockchains will operate in conjunction with the main Ethereum network, alleviating congestion, throughput, and costs.

My pick for a stock trading under $20 with significant long-term growth potential is Farmland Partners (FPI 0.36% ). This firm, like traditional REITs, is structured as a real estate investment trust and focuses on farmland, particularly in the United States. Its share price closed at $14.11 on Friday.

One of only two publicly listed farmland REITs is Farmland Partners. The Gladstone Land Company is the other.

Before we get started, I’d like to issue a warning: While there is the potential of finding some relatively underpriced stocks among lower-cost equities, as a whole this area is regarded to be rather risky.

Why invest in REITs?

Real estate investment trusts are a popular choice for investors because they pay good dividends. They must distribute at least 90% of their yearly income as dividends in exchange for the tax benefits they receive.

Farmland Partners’ dividend is currently paying out about 1.7%. This is below average for REITs, but it might be a good fit for investors looking to achieve long-term capital growth rather than current income.

Why invest in U.S. farmland?

In my view, the long-term value of American farmland will rise nicely due to supply and demand factors.

Because of continuing growth and climate change, arable land will be harder to come by in the future. This country and around the world are experiencing more severe droughts as a result of increasing development and climate change. Demand for crops cultivated on land, on the other hand, is expected to increase. The world’s population is increasing, with more individuals moving into the middle class in developing nations.

In addition, the pandemic and the Russian invasion of Ukraine have highlighted the importance of corporations (and entire countries) maintaining domestic supply chains. This is especially true for supply chains for essential items and commodities, such as food.

Another reason to buy farmland now is because of the current high-inflation climate, which investors can accomplish by purchasing shares in a farmland REIT. When inflation is high, investments in real assets tend to outperform those in other categories.

Farmland Partners’ business and key stats

Farmland Partners is a private company dedicated to acquiring, leasing, and managing high-quality agricultural land in the United States. It leases farmland to farmers to cultivate a range of vegetables on behalf of its investors. It also provides  brokerage, auction, and third-party farm management services.

By the end of the first quarter, the company’s portfolio included around 160,700 acres of own land and 25,000 acres of managed farmland in 19 states. The firm’s farms have good geographical, tenant, and crop diversity with more than 100 tenants and 26 crop types grown there. There was no portfolio vacancy.

The firm raised its quarterly payout by 20% to $0.06 a month ago. CEO Paul Pittman said the increase was due to “strong earnings progression, significant asset appreciation, reduced debt leverage, and improved budget transparency.”

The company has now announced a 20% dividend increase, making it the first such boost since last year. According to the declaration, management is “very enthusiastic” about the firm’s long-term financial success.

Finally, with a farmland REIT, investors can anticipate some cyclicality owing to the fact that agricultural commodity prices are presently at or near all-time highs. However, for these commodities due to supply demand reasons stated in my opinion, I believe the long-term trend will be up. If this concept pans out, Farmland Partners’ stock should prosper as a long-term winner.

The recent stock market sell-off has taken attention away from several of the world’s most prominent cultural and technological megatrends. But those trends are still developing, offering investors a chance to capitalize on them despite the commotion.

The metaverse is another fascinating trend to incorporate. It’s a market that Bloomberg Intelligence predicts will increase at an annual rate of 13% between now and 2024, when it will be worth about $800 billion.

Let’s take a look at two underperforming names with at least a minor stake in the metaverse industry. Of course, these little positions might develop into significant moneymaking opportunities as the metaverse market matures.

1. Nvidia

Nvidia is a graphics processor manufacturer that uses computers to connect to computer monitors. The same technology also drives a number of artificial intelligence projects. But the metaverse? What role can this firm play in helping to construct the global virtual meeting places?

It’s a rather simple fit. The metaverse isn’t simply a network of computers, but also a visual connection among metaverse users. This world must be able to deliver computer-generated imagery to a pair of goggles worn by a user instantly and efficiently in order to be successful. Nvidia’s graphics card know-how is ideal for the job.

In fact, it already has a program for that. It’s called Omniverse. The firm describes Omniverse as “an easily extensible platform made for 3D design collaborations and scalable multi-GPU, real-time, true-to-reality simulation,” and it was introduced in late 2020.

The goal of the Omniverse is for it to be more collaborative than enjoyable, and for it to function as a training and/or prototyping tool. Early adopters were businesses interested in creating a virtual product or process rather than putting their money into something that might not turn out exactly as planned. Nothing essential has been said, however the technology may be developed further and used for more entertainment-oriented purposes.

It’s a tiny fraction of Nvidia’s revenue mix these days, so small that the firm does not even report it separately. In light of this, Nvidia isn’t really a metaverse stock.

That is changing, though. Nvidia revealed Meta Platforms in January, when the firm formerly known as Facebook and the company perhaps leading the metaverse charge acquired 16,000 Nvidia-produced A100 processors designed from the ground up to handle AI workloads. These extra firms are more likely to help Nvidia shares rebound from their present slide sooner rather than later.

2. Microsoft

Nvidia’s rivals are also on the defensive. Microsoft’s stock price has dropped 27% this year, driven down by the market’s bearish mood. When investors learn that this firm’s revenues are still anticipated to rise 18% in 2018 and 14%) next year (because the world isn’t ready to give up its computers or computer software), however, the selloff might be reframed as a buying opportunity.

Microsoft’s entrance into the metaverse race is similar to Nvidia’s, although it isn’t quite the same. While Nvidia’s Omniverse is primarily a testing platform, Microsoft Mesh is a turn-key product designed to enable users of Microsoft Teams to interact with one another virtually. Mesh may help coworkers collaborate on product development, but the company claims its primary objective is “to facilitate ‘eye contact, facial emotions, and gestures,’ so that your personality shines through.” The firm is also developing the user technology required to make the most of Mesh. Its HoloLens is a pair of augmented reality glasses rather than full-fledged immersive goggles designed to assist team members in seeing and discussing manufacturing, engineering, and even healthcare issues at the same time.

Microsoft’s more recent Xbox gaming consoles are already capable of providing a virtual reality experience with third-party VR goggles, however both platforms are currently intended for businesses rather than individual consumers. However, it is not implausible that the underlying technology will eventually get into the hands of consumers in order to broaden its usage scenario. It would be a pretty short leap to connect the two different platforms into a metaverse-themed service.

Microsoft’s current metaverse revenue, like that of Nvidia, is so small that it isn’t even mentioned in its quarterly filings. Also like Nvidia, however, this isn’t always a bad thing. Microsoft’s software and cloud computing earnings are expected to start a resurgence rally well before the metaverse initiatives begin to produce significant results.

Bitcoin was the first crypto and is still the most well-known in the industry more than ten years later. Cardano, a smart contract blockchain platform, has an ambitious long-term strategy.

In 2021, Bitcoin and Cardano each increased by 1,000 percent in value. In the first half of 2022, both of these digital coins plummeted by 90%. Will their prices be able to stabilize and restart their slowing growth trajectories in 2022? Let’s have a look at Cardano and Bitcoin to find out for ourselves.

The case for Bitcoin

Bitcoin prices have fallen 69% from all-time highs set in November, bottoming out at roughly $21,000 per Bitcoin on June 15. Since December 2020, the biggest cryptocurrency hasn’t seen values this low. Despite the recent negative vibes, Bitcoin has delivered market-beating returns over the previous two years:

As with every other economic crisis, this bear market will eventually come to an end. Meanwhile, foreign and domestic regulators are working on legal structures and taxation systems for these newfangled digital assets, while even an overly stringent set of rules would be preferable to the current vacuum of regulation. The crypto sector that has been beaten down will rise again.

The future of decentralized finance, Web3, and the metaverse will be shaped by Bitcoin’s ability as a simple payment mechanism and an extremely secure storage system for economic value. There are other cryptocurrencies that perform similar tasks, many of which were started as direct copies of Bitcoin’s code, but none comes close to matching Bitcoin’s broad market presence.

Bitcoin is likely to be supported by any system or service that handles financial transactions. Bitcoin is commonly used as the first-choice option, and it’s become more popular. Every new Bitcoin-powered product grows the currency’s market strength. This is an instance where having the initial mover advantage benefits Bitcoin in the long term.

The bitcoin rally may not start until Washington (and Beijing, and Tokyo, and Berlin, and…) completes its thorough cryptocurrency legislation. But if they do, you do not want to be left out.

The case for Cardano

The Smart Contracts Platform’s Future Could Be Even More Exciting Than Bitcoin’s.

Even though Cardano was not designed to meet the ERC20 token standards from the start, it is compatible with existing smart contracts written for Ethereum. The feature was introduced in a later code upgrade, which was implemented using Milkomedia, a plug-in blockchain that also incorporates cross-chain capabilities similar to the Polkadot ecosystem.

The Milkomedia feature demonstrates Cardano’s adaptable blockchain architecture in a powerful light. This development platform is expected to add more features over time while remaining at the forefront of blockchain innovation. Cardano already includes decentralized lending and borrowing capabilities, yield farming protocols, NFTs, and a variety of other features.

Cardano is positioned to supply a lot of the functionality of decentralized banking and transaction services, according to proponents. This currency isn’t out to kill or replace Ethereum, which appears set to retain leadership in the smart contract market. Instead, Cardano enables app developers access to unique features and capabilities as well as high-speed contract processing.

Don’t forget that Ethereum’s overall market cap is $130 billion today, whereas Cardano has a little over half of that ($55 billion). Even if Cardano achieves just 20% of the larger cryptocurrency’s market share, it can outperform Ethereum by 50%.

Who’s the big winner?

There are no losers in this contest. Cardano appeals to a different sort of investor than Bitcoin, with greater potential returns in an even more competitive subsector. If I have to pick one winner, it has to be Bitcoin because it is the closest one to a guaranteed winner in this fast-paced market. Long-term investors should build their crypto-focused portfolio around Bitcoin, leaving a smaller proportion for the more exciting but more un-predictable Cardano coin.

Alphabet (GOOGL -3.40%) appears to be well-positioned in the cloud industry, yet some opportunity has evaporated. The initial cloud wars have been lost by Alphabet’s cloud business, which now boasts significantly less clout than Amazon’s AWS and Microsoft’s Azure. As a result, many investors believe that Alphabet no longer has the capacity to create a meaningful cloud business. Here are a few reasons why Google’s cloud operation may flourish and turn profitable in the future.

Google wasn’t late to the cloud industry, contrary to popular belief. Google released Google App Engine in 2008, just two years after Amazon introduced Amazon Web Services (AWS). Some thought GAE was technically superior to AWS. Despite this, AWS won the early rounds of competition for market share. And it’s probable that one of the most important factors behind GAE’s failure to compete with AWS was a lack of confidence from many developers in Alphabet’s commitment to build a cloud business.

1. Trending toward the multicloud

Most customers only select one cloud provider in the early days of cloud computing. However, the cloud has evolved over the years from organizations that relied solely on a single cloud to those that use several. According to a Gartner poll of public cloud users conducted in 2020, 81% used two or more providers. For a variety of reasons, the number of people using various clouds is increasing.

One, employing several clouds minimizes the danger of a single provider’s failure. No company wants its operations to be interrupted by services failing. A multicloud architecture ensures that business activities continue uninterrupted; if one cloud goes down, businesses may quickly move to another.

Second, since Microsoft dominated the market with its proprietary Windows operating system in the 1990s, businesses have shunned relying on only one vendor for a critical piece of software. Google understands that firms don’t want to be restricted to using only one cloud, so it has built its platform to allow developers to create new software programs and run them on the cloud service they choose.

Many of Google’s best-of-breed solutions are available for use on any cloud and are paid for by users. Customers can utilize Google’s BigQuery analytics on data stored in Amazon S3 or Azure blob storage. Alphabet may still benefit from businesses that use other clouds.

2. Security is a huge differentiator for Google

Since the 2020 Solarwinds hack leaked sensitive information from the US federal government, Cloud customers have become more concerned about security.

As concerns swirled about security in the wake of Solarwinds, Forrester Research released a study at the end of 2020 declaring Google Cloud to be a leader in IaaS security. Recently, during a Deutsche Bank conference, the Google Cloud CEO Thomas Kurian referred to Google’s cloud tools and security as a major differentiator for the company in adding interest from prospective clients.

Alphabet has a long-standing commitment to security, and it wants to acquire security firm Mandiant (MNDT -0.97%). As a result, Google Cloud will have a weapon its bigger rivals do not. Mandiant, formerly FireEye, was the first firm to discover the Solarwinds breach.

On June 14, Oracle’s stock price soared 10% after the enterprise software firm announced its report for Fiscal 2022 fourth-quarter earnings (for the period ending on May 31). Its revenue increased 5 percent year over year (or 10 percent in constant currency terms) to $11.84 billion, exceeding analysts’ expectations by $190 million.

Adjusted net income dropped 6% year over year to $4.24 billion, but the adjusted earnings per share (EPS) boosted by $600 million in buybacks — remained flat at $1.54 and exceeded expectations by $0.16. Its net income fell 21% on a generally accepted accounting principles basis to $3.19 billion.

Despite the fact that its reported earnings may appear modest, Oracle’s stellar top-line growth, consistent profitability, high dividend, cheap valuation, and aggressive stock buybacks all make it a recommended investment in this turbulent market.

Should investors buy Oracle shares as a defensive investment against the possibility of an economic downturn?

Its revenue growth is accelerating again

Oracle’s expansion slowed in fiscal 2019 and 2020 when it failed to compensate for the slower growth of the legacy on-site services. That deceleration even compelled Warren Buffett’s Berkshire Hathaway, which had been favorably impressed by Oracle’s consistent growth and substantial buybacks, to sell all of its shares in January 2019. Later that year, Oracle co-CEO Mark Hurd died.

Oracle’s revenue growth has remained steady and accelerated once again over the past two years. Its consistent buybacks, which decreased its outstanding share count (on a diluted weighted average basis) by 33% over the last five years, also allowed it to deliver rock-solid earnings growth.

The company credited its strong recovery to the growing popularity of its Fusion ERP, OCI, and NetSuite ERP cloud-based solutions. Its license support revenue and total cloud services climbed 6% to $30.2 billion in FY 2022, accounting for 71% of its top-line growth over the prior year.

Its higher-growth cloud services sales increased 22% to $10.8 billion in 2022. In constant currency, it anticipates the segment (excluding Cerner) to rise about 30 percent organically in fiscal 2023.

A bright future and a reasonable valuation

Analysts forecast that Oracle’s GAAP EPS and revenue (including Cerner) will rise by 18% and 63%, respectively, for the year. Oracle is priced at a fair 18 times forward earnings, with a forward dividend yield of about 1.8 percent paid out.

For growth investors, Oracle may appear to be a boring investment but I think it’s the perfect type of defensive stock for this volatile environment.

In retirement, most seniors rely on Social Security payments to cover their expenses, but knowing how much they’ll receive isn’t always simple. There are a few things that influence this, such as when you file for benefits, your birth year, and your income throughout your career.

If you live in one of the following 12 states, you’ll also have to worry about Social Security Benefit Taxes stealing a portion of your pay. It’s usually possible to avoid these penalties, but not always. Here’s everything you need to know about saving as much money on your Social Security checks as possible.

The following 12 states levy a Social Security benefit tax.

The following twelve states tax some of their seniors’ Social Security payments:

1. Colorado
2. Connecticut
3. Kansas
4. Minnesota
5. Missouri
6. Montana
7. Nebraska
8. New Mexico
9. Rhode Island
10. Utah
11. Vermont
12. West Virginia

Even if you live in one of these states, you may not owe anything. Each state has its own regulations determining who is responsible for Social Security benefit taxes. Your yearly compensation or adjusted gross income (AGI) usually must exceed a certain level. In Kansas, if your AGI is less than $75,000, your Social Security payments are exempt from taxation automatically.

Check to see whether you are in danger of owing these taxes. You should double-check this before retirement as well. In some states, future legislation may modify or eliminate the Social Security benefit tax.

The federal government also takes a cut of your Social Security payments.

Even if you don’t reside in one of the above-mentioned states, you may still be required to pay federal Social Security benefit taxes. It all boils down to your provisional income. which is your AGI plus all nontaxable interest and half your yearly Social Security benefit.

The thresholds for these benefits and deductions can vary from year to year, so double-check them every few years and before signing up for benefits to ensure you understand what you’ll owe.

For over 50 years, Berkshire Hathaway has been Warren Buffett’s investment vehicle, and in the first quarter, the legendary investor was busy purchasing shares of several firms.

Apple (AAPL 2.01%) and Coca-Cola (KO 0.74%) are two excellent companies worth investing in during this bear market, according to Berkshire’s quarterly report. Both have strong brands that can weather a tough economy and provide long-term returns.

Iconic brands will survive hard times

If you’re going to piggyback on the greatest investor of all time, why not start with his biggest gamble? Berkshire owned 890 million shares of Apple that was valued at $155 billion as of March 31. It’s one of Buffett’s largest investments ever.

Hard not to notice the value underpinning Apple. The stock has a reasonable price-to-earnings ratio of 21.5. Given that over the last century, the typical company has traded at around 16 times earnings, Apple isn’t too expensive. Buffett or one of his investing deputies clearly thinks the stock is a good value right now, as Berkshire Hathaway increased its Apple stake in the fourth quarter.

Apple’s new proprietary M1 processors have hit the mark with its line of Macs and iPads. In fact, in a quarter when worldwide PC sales decreased overall, Apple was one of the few companies to increase market share in worldwide PC shipments, surpassing Lenovo and HP.

Apple generates a large sum of money from operations, which is used to fund new product development and technological advancements as well as increasing dividends and share repurchases. In the last five years, Apple has spent approximately $500 billion on capital returns to shareholders. The continued stream of revenue generated by Apple from selling products that people like to utilize every day is a compelling reason to purchase the stock in a bear market.

Coca-Cola has become a staple in many people’s homes for decades

Coca-Cola stock has been a mainstay in Warren Buffett’s portfolio for several decades. Coca-Cola has done an excellent job of keeping its market leadership in non-alcoholic beverages. Millions, if not billions, of people throughout the world drink one of Coca-Cola’s line of products on a daily basis.

Coca-Cola’s earning of $38.6 billion in 2021 is a testament to its success. That was up 17% from the $33 billion it earned in 2020. Coca-Cola has formed a number of unique partnerships with off-site channels such as restaurants, theme parks, and movie theaters as a result of which its revenue has been negatively impacted by the pandemic. The situation is now playing out in reverse. As people become more comfortable leaving their homes due to COVID-19, Coca-Cola profits.

By reducing waste at its operations, Coca-Cola has increased its operating profit margin from 22.4% in 2012 to 28.6% in 2021. That margin improvement is certain to play a significant part in investor optimism as higher inflation strains profit margins across all sectors.

Furthermore, in a bear market, investors place a higher premium on companies with long-term profits. Given that people have for decades developed the habit of drinking one of Coca-Cola’s beverages following their employment or income decrease, it is doubtful that they would abandon the practice. For those reasons, Coca-Cola is at the top of my Warren Buffett investments to buy during a bear market.