Stocks during recession historically It's important to note that there is no guarantee that any particular stock will perform well during a recession. However, historically, certain sectors and companies have tended to perform better than others during economic downturns.
Consumer Staples: Companies that produce essential goods such as food, household items, and personal care products tend to perform well during recessions. This is because people continue to purchase these items even when times are tough. Examples include Walmart, Procter & Gamble, and Coca-Cola.
Healthcare: Healthcare stocks, particularly those involved in pharmaceuticals and medical devices, have been relatively recession-proof in the past. This is because people still need medical care and may even require more of it during tough times. Examples include Johnson & Johnson, Pfizer, and Abbott Laboratories.
Utilities: Utility companies that provide electricity, gas, and water tend to perform well during recessions. This is because people still need these essential services, regardless of the economic climate. Examples include Duke Energy, Southern Company, and American Water Works.
Discount Retailers: Discount retailers tend to perform well during recessions as consumers are more likely to look for bargains. Examples include Dollar Tree, Dollar General, and TJ Maxx.
Defense: Defense stocks have also tended to perform well during economic downturns, as governments continue to spend on defense and security even during tough times. Examples include Lockheed Martin, Raytheon, and General Dynamics.
However, it's important to keep in mind that past performance is not a guarantee of future results. Economic cycles are unpredictable, and there are many factors that can influence how a particular stock or sector performs during a recession. It's important to do your own research and consult with a financial advisor before making any investment decisions.