A Safe for Safety?

In my previous post I wrote about put options as a way to hedge risk in times of uncertain markets. It's a bit tricky and options trading isn't for everyone, but you CAN make money in times like these.

As you may be hoping, there are other options when it comes to investing in wild times like these. For example, sales of Campbell's soup (CPB) have profit up 46% on the year. With inflation driving prices of many consumer goods up, middle-America appears to be loading up with some old-fashioned staples.

Another example of the times is sales of safes. Companies like Sentry Safe and Gardall are reporting sales increasing 50% over the previous year. Unfortunately for us, Sentry Safe and Gardall are privately held companies, but they serve as examples for what we should be looking for.

Some people may be concern that as the nation's economic situation deteriorates and jobless rates rise, crime will rise too. This is a pessimistic view, but it may pay to be prudent.

Self-defense and law-enforcement tool maker Taser (TASR) is currently suffering from a lawsuit stemming from an incident in 2006, but can we imagine Taser's sales increasing? The share price is down nearly 67% on the year, but that could represent a good entrance point.

Now I'm not necessarily recommending you run out and buy shares of Campbell or Taser, but perhaps it wouldn't hurt to take another look. After all, Campbell is only down 2.46% on the year, compared to 36% for the Dow. Campbell has also paid out its quarterly dividend this year - a friendly 2.93% and recently announced it was raising it's dividend 14%.

With the market as crazy as it is these days, consider what sort of companies can profit in downturns and sell goods or services that people won't cut out of their budget. Dollar stores are reporting booming business these days. Dollar Tree (DLTR) is up 35% on the year.

It's currently hunting season here, so best of luck bagging a solid company!