2 Stocks to Buy When the Market Crashes (and 2 to Avoid)

Market Overview - The stock market is experiencing a surge, driven by investor optimism regarding potential interest rate cuts from the Federal Reserve, but historical trends indicate that such cuts often precede recessions [1] - Despite a strong labor market and positive trends like re-industrialization, there are concerns about GDP performance and the possibility of a recession [1] Stocks to Buy - ThredUp (TDUP): An online resale platform that has shown resilience in a challenging economic environment, reporting Q1 revenue of $79.6 million, a 5$0.7 million [2][3] - The resale market is projected to more than double its market share, reaching $350 billion globally by 2028, positioning ThredUp to benefit from the shift towards secondhand goods [3] - **McDonald's (MCD)**: Recently launched a$5 meal deal to attract budget-conscious consumers. Despite a 13% year-to-date decline, McDonald's has historically performed well during economic downturns, suggesting potential for recovery [5] Stocks to Avoid - Coinbase (COIN): The leading U.S. cryptocurrency exchange has seen its stock rise 181% over the past year, but faces significant challenges including decreased trading volumes and ongoing legal issues with the SEC. Insiders sold $383 million worth of shares in Q1, indicating potential lack of confidence [6][7] - **Robinhood (HOOD)**: The online brokerage reported record Q1 revenues of$618 million, a 40% year-over-year increase, but its business model faces scrutiny due to regulatory risks and reliance on volatile markets. The company is under investigation by the SEC, which raises concerns about its sustainability in a downturn [9][10]