Jeremy Bowman, The Motley Fool

Sat, Jun 28, 2025, 1:00 AM4 min read

• Bond yields have remained elevated as even the Fed has lowered interest rates.

• Countercyclical stocks like Dollar General and AutoZone should do well amid economic pressure.

• 10 stocks we like better than Philip Morris International ›

Jami Dimon is one of the most respected minds on Wall Street.

The JPMorgan Chase (NYSE: JPM) CEO not only leads the biggest bank in the country by assets but also famously led his bank though the 2008 financial crisis and did not need to be rescued by the government, though it did participate in the Troubled Asset Relief Program (TARP).

Given his experience and his position, investors tend to pay attention to what Dimon has to say, so it was notable when he warned of the bond market "cracking."

At the Reagan National Economic Forum earlier this month, Dimon predicted that the bond market would crack, blaming excessive deficit spending and a large debt for pressuring interest rates higher as the 10-year yield is hovering at levels not seen since 2007.

If you're looking for stocks that will help protect you from a cracking in the bond market, keep reading to see three that can do just that.

Philip Morris Intenational (NYSE: PM) is well equipped to thrive no matter what happens with the bond market for several reasons.

First, the stock gets nearly all of its business from international markets, so it's less exposed to the typical S&P 500 stock.

Second, the company sells tobacco products and related next-gen products like Zyn oral nicotine pouches. Those are typically seen as recession-proof products since consumers buy them regardless of the state of the economy. In other words, bond rates are unlikely to affect demand for the product.

Additionally, the company has delivered strong results across the business, especially with its next-gen business, made up of products like Zyn and its IQOS heat-not-burn devices. The next-gen category now makes up more than 40% of its revenue and gross profit, showing it can still deliver growth despite competing in the mature tobacco market.

Like Philip Morris, AutoZone (NYSE: AZO) has proven its ability to deliver results even in a recessionary environment. In fact, AutoZone, like other aftermarket auto parts, is countercyclical, meaning it tends to do better when the economy is weak.

That's because in weak economies, consumers choose to avoid buying new cars and instead spend money on repairs, which favors retailers like AutoZone.

In addition to the nature of the business, the company also has a long history of outperforming the market thanks to its hub-and-spoke store model whereby larger nearby stores can support and supply smaller stores, helping to ensure that all stores are fully stocked.