
The reality of the situation we are in right now is that a recession of some kind is very likely. I am trying to provide readers with content that will help them stand their ground in the recession environment. Today I will start a new series designed to help the individual investor navigate their way through the recessionary trade. The series will begin today with a look at the top 5 sectors to own in a recession. In the following days I will look at some of the best individual stocks from each of these sectors. First things first though, which are the top 5 sectors to own in the current recessionary conditions?![]()
Top 5 Stock Sectors to own to withstand a recession
- Drug Stocks- This one makes complete sense without thinking about it very much at all. Drug companies make medicine and medicine is what people to take to heal them or keep them from developing more health problems. Doesn't it make plenty of sense that people are going to continue to buy prescription drugs for their health regardless of the economic situation? It certainly does to me. You can't get any more recession-proof than medicine.
- Utilities- Utility stocks come in at number two on the list. We all get them every month, utility bills. They are the things you hate to pay, but you know you have absolutely no choice at all. It is for precisely this reason that these stocks do well in recessionary periods. Consumers don't want to pay utility bills, but realize they have to, so these companies will do just fine.
- Consumer Non-Cylicals- This one should be an easy one to remember as well since it has the word non-cyclical in it. Non-cylical tells you that these companies aren't dependent on the economic cycle to make money. These are things such as beverage companies, tobacco companies, and other food companies.
- Industrial Metals- All the metal stocks are well noted to be top performers in recessionary periods. The thinking here is that things such as gold, silver, copper, etc. are all even more precious in times that the economy and other things such as the US Dollar are weak. We certainly have a very weak dollar right now, and gold has benefited from that.
- Energy stocks- In past recessions energy stocks probably wouldn't have been on this list, but this time is different. Oil prices are going through the roof and demand seems to be staying sky high. In fact one of the top reasons we are now in these negative economic times is the price of oil and gasoline.
There you have it, the top five sectors to withstand recession. Investors would do well to invest in top notch companies inside these sectors. Stay tuned because in the coming days I will provide some lists of top stocks from inside each of these lists.






» Top 5 Consumer Non-Cyclicals to withstand recession from GrowYourFunds
In continuing with the mini-series from last week where I looked at the top stock sectors to own during a recession, today it is time to look at the consumer non-cyclicals. This is a group that does well regardless of... [Read More]
Tracked on: April 23, 2008 6:26 PM | Permalink to Trackback