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Hindenburg Omen: In a Market Crash, Which Consumer Stock to Play?

(Poll story updated with UBS analyst's comment) NEW YORK ( TheStreet) -- With all the talk about a possible a stock market crash following last week's Hindenburg Omen, are you more afraid than ever to invest in stocks or are you looking forward to a good buying opportunity?

Hennessy Funds' Frank Ingarra noted that a major pullback in the stock market would create a "great" buying opportunity for the top consumer stocks, adding that investors could also diversify into Verizon (VZ - Get Report) and other Dow stocks.

On the other hand, Ingarra added that he's worried that another stock market crash could further deter average investors, who have already been scared off by the recent crashes: another would "definitely hurt the psyche of the average investor," Ingarra predicted.

In light of this, what type of investment vehicle are you more attracted to right now?

What investment vehicle are you more attracted to right now?


Stephanie Link, Director of Research & Vice President of Strategy for TheStreet, notes that "if we crash [the top-performing consumer good stocks] would just go down less."

"The yields are compelling, particularly Altria (MO - Get Report)," Link says of top-performing consumer good stocks. In addition, RealMoney contributor and Trinity Asset Management's Brian Gilmartin says that stocks like P&G (PG - Get Report), J&J (JNJ - Get Report) and Altria are "all pretty good cash flow generators."

Gilmartin said they would definitely be "a flight-to-safety trade if the market declines 10%."

Link adds, "I think how you need to look at it is that there are always winners and losers (from a stock point of view) in every category, no matter what the macro implies -- whether it be superior size or scale, productivity measures, internal restructurings that help a company outperform on the bottom line despite the weak macro."
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PG $80.41 0.64%
UN $42.21 0.88%
VZ $49.98 1.20%
COST $148.51 1.30%
CLX $126.97 -0.01%


Chart of I:DJI
DOW 15,888.33 +228.15 1.46%
S&P 500 1,853.17 +24.09 1.32%
NASDAQ 4,307.7790 +40.9420 0.96%

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