"With three consecutive double-digit return years in the market, many younger investors don't really know much else other than "market go up." Of course, for older investors who have lived through the GFC, dot-com bubble, or previous downturns in the 1990s or 1980s, it's not a straight line higher. And in fact, the longer of a stretch we go with valuation multiples expanding and the economy booming,"
"During boom times, it's normal to see bars, nightclubs, fine dining establishments, and a range of other pricey options take more share. However, when the economy does sour, those looking for a meal they don't have to cook will trade down. We saw this trend play out during the GFC, with McDonald's ( NYSE:MCD) seeing its revenue and earnings actually grow throughout the downturn."
Recent consecutive double-digit market returns have led many younger investors to assume continued gains, while longer-tenured investors recall past downturns. Extended valuation expansion and a booming economy raise the probability of a correction or bear market, though a 2026 crash is not the base case and downside probabilities have been increased. For more cautious investors, defensive large-cap equities can provide resilience. McDonald's is highlighted as a top buy due to consistent demand, consumer trade-down behavior during recessions, historical revenue and earnings growth through the GFC, and continued system-wide sales growth near 8% with earnings growing around 2%.
Read at 24/7 Wall St.
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