A combination, though, of low petroleum prices, lower raw costs and a consumer who has to buy necessities will always buoy the Procters (PG) and the Johnson & Johnsons (JNJ) and the Krafts (KFT) and the General Mills (GIS) right back.

Terranova noted three stocks that have held up during the bear market: General Mills(GIS), Burlington Northern(BNI), and Abbot Labs(ABT). They all have a strong balance sheet with good fundamental stories behind them. And they held up well in this decline.

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I don't like that it was, once again, led by the now totally manipulated stock of Exxon Mobil (XOM), because that stock can ramp even when oil crashes, but at least there are some solid stocks such as Hewlett-Packard (HPQ) and General Mills (GIS) and Cisco (CSCO) playing a role. Those are dirt cheap, by the way, at this point.

defensive conserve cash

People will still buy food in this economy

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General Mills, unlike Kellogg (K), isn't big in Europe and its expansion is in China. But it is still largely U.S., which sure is fabulous right now

General Mills [GIS] looks attractive to me, says Terranova. The stock has great fundamentals and investors have just thrown it overboard out of fear.

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The International Dairy Foods Association tried, unsuccessfully to prevent the FDA from saying cloned food is safe. KFT and GIS are among the companies represented by this association.