Stocks have rocketed higher recently, erasing most of the massive losses seen during the coronavirus market crash earlier this year. In fact, the S&P 500 is actually up about 5% year to date. While this bull market resurgence has been good for investors’ portfolios, there’s always a possibility of another market crash around the corner.

Indeed, many investors may have some specific concerns on their mind, including uncertainties surrounding the election, the possibility of a bigger wave of COVID-19 cases during the cold and flu season, increasing national debt levels, or simply a stock market correction after a sharp run higher. Any of these factors has the potential to morph into a bearish trigger for the market, potentially leading to a stock market crash.

If you are concerned about a potential market crash and want to invest in companies that can easily endure extended periods of economic weakness, consider investing in these two stocks: Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) (NYSE: BRK.A) and grocery chain Kroger (NYSE: KO).

A chart showing a stock price falling

Image source: Getty Images.

2 stocks for a market crash

Berkshire Hathaway, helmed by famed investor Warren Buffett, is a financial fortress built to endure just about anything that is thrown its way. Buffett has said Berkshire’s financial affairs will always be managed “in a manner allowing the company to withstand external shocks of an extreme nature.” Perhaps this explains the company’s record $143 billion cash and cash equivalents at the end of its most recent quarter. This war chest is equal to about 28% of Berkshire Hathaway’s $511 billion market cap at the time of this writing.

Even more, many of Berkshire’s assets and stock holdings are defensive companies selling products likely to continue to be purchased during tough times. A significant portion of Berkshire’s operating activities, for instance, are

A key top Federal Reserve official said Tuesday that he is not worried about inflation.

New York Fed President John Williams, who is a key adviser to Fed Chairman Jerome Powell, said that he doesn’t see any sign of high inflation.

“I”m not worried about inflation. Obviously if there were significant inflationary pressures with inflation taking off, we know how to respond to that. But I don’t see any signs of that,” Williams said, during a discussion sponsored by the Fisher Center for Real Estate & Urban Economics at the University of California, Berkeley.

Some analysts and Fed officials think that the economy is recovering so strongly that there will be bottlenecks that push up prices. Other economists note that wage growth, a critical component of inflation, remains subdued.

The Fed has promised to allow inflation to run moderately above its 2% target for some time before lifting rates off of zero.

Williams was relatively upbeat about the economy, saying he was optimistic that the strong recovery seen since June would continue for the rest of the year and into next year. He said he expected the economy would fully recover in about three years time.

Read:New York Fed’s Williams says Treasury market seizure in March underlines importance of central bank backstop

Other Fed officials have sounded more cautious about the downside risks given the economy is not through the pandemic.

Stocks were lower Tuesday as investors awaited the first presidential debate. The Dow Jones Industrial Average
DJIA,
-0.18%

  was down 134 points in early afternoon trading.

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