Stocks that can withstand this recession have risen 16% this year. Here are some reasons why Trump’s tariffs can be beaten:

Spring is just beginning to bloom, but 2025 is already beginning to look like a lost year for investors. As of April 8th, S&P 500 (snpindex: ^gspc) It’s down 18% Nasdaq Composite Located in Bear Market, investors are involved in President Donald Trump’s plan to impose the highest tariff rate for over a century.

Last week, all but five S&P 500 shares were red, of which only one is not a medical company. A retailer with a business model that makes it Endure the recession. In fact, it has a history of recession, seeing stronger growth in recession, and is well positioned to avoid tariff-related headwinds.

I’m talking General Dollar (NYSE:DG)a discount retailer who suddenly appears to be the winner after stumbling through 2023 and 2024. As you can see from the chart below, Dollar General has surged this year, easily defeating a wide range of markets.

Dollar General was acquired as the S&P 500 fell and showed off its anti-cyclical nature. The share price surged the day after Trump announced global tariffs, rising 4.7% even if the rest of the market fell.

In a current moment of uncertainty in both trade policy and the overall health of the economy, Dollar General discovers itself in its own right, especially compared to other retailers.

First, consumables account for the majority of the company’s sales – 82% in 2024. These are products such as paper and cleaning products, packaged food, fresh food, health and beauty products, all purchased by consumers at good or bad times.

The company has far less tariff exposure than most retailers, as much of its sales are from foods that are generally produced domestically. According to Citigroup Analysts, about 10% of their inventory is exposed to tariffs, much better than Dollar Tree50% as the latter company tends to sell more discretionary items.

Dollar General also has a history of outperforming in the recession, as consumers tend to trade down from more expensive stores when they are trying to save money. Additionally, retailers have the advantage of selling smaller package sizes, allowing consumers to purchase a single roll of toilet paper or paper towels, but not their competitors. Walmart.

Amidst the suffering of the Great Financial Crisis, Dollar General reported sales growth rates for the same store of 9% in 2008 and 9.5% in 2009, showing how consumers flock to stores to save money. Over its history, the company has achieved sales growth rates for the same store every year since 1990, except in 2021 (16.3% of the same store sales spikes were 16.3% when the Covid-19 hit fell 2.8% the following year in 2020). That track record shows that it can work well in any economy.