Johnson & Johnson (JNJ), PepsiCo, Inc. (PEP): Why You Should Embrace Falling Markets

If you’re wondering how any company can hold such tremendous histories of success in such a volatile market, it’s because of the stability of their underlying businesses. In times of economic distress, consumers will cut back on buying appliances and taking luxury vacations. However, consumers are extremely unlikely to stop purchasing soda, toilet paper, bandages, and mouthwash, regardless of the prevailing economic environment.

Don’t fear the Fed

In the end, investors need to understand that ultimately, the Fed’s tapering is a good thing. If the Fed decides to end its bond-buying and aggressive monetary easing, it would only do so amid a stronger economy. The stock market doesn’t like the Fed taking the punch bowl away, but an economy that can stand on its own legs is absolutely normal.

Just as when a child has the training wheels taken off their bike there’s bound to be a few scrapes and bruises, you can expect enhanced market volatility if the Federal Reserve isn’t there to keep juicing markets. But that also means we’re finally back to a healthy economy, which is a great thing for corporate profits to keep flowing higher. In turn, stocks such as PepsiCo, Inc. (NYSE:PEP), Kimberly Clark Corp (NYSE:KMB), and Johnson & Johnson (NYSE:JNJ) will only continue their long histories of raising dividends. On top of that, if you have the opportunity to buy these fantastic stocks at attractive prices, you’ll do even better over the long term. Get your shopping list ready, and be ready to take advantage of bargain prices.

Robert Ciura has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson, Kimberly-Clark, and PepsiCo. The Motley Fool owns shares of Johnson & Johnson (NYSE:JNJ) and PepsiCo, Inc. (NYSE:PEP). Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Why You Should Embrace Falling Markets originally appeared on Fool.com and is written by Robert Ciura.

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