Recession-proof stocks

Stocks that weathered the 2008 and 2020 recessions:

• Target Corp. (TGT)
• Lowe's Cos. (LOW)
• Nike (NKE)
• NextEra Energy (NEE)
• Walmart (WMT)
• Dollar Tree (DLTR)
• Home Depot (HD)

1. What stocks do well during a recession?
2. Are there any recession proof stocks?
3. What makes a stock recession proof?
4. Are luxury goods recession proof?
5. What two things are recession proof?
6. What is the most recession proof business?
7. Is it safe to invest in stocks?
8. Should I sell my stocks before recession?

What stocks do well during a recession?

Blue-chip stocks are attractive to investors during recessions because they typically pay dividends, providing them with a tangible return in the form of income. Blue-chip stocks in recession-resistant industries tend to be especially stable, which can help lessen the blow of a market sell-off or recession.

Are there any recession proof stocks?

In May 2018, I discussed three recession-resistant stocks that I thought would do well in the case of a downturn. They were Church & Dwight (NYSE:CHD), DollarTree (NASDAQ:DLTR), and Flowers Foods (NYSE:FLO). All three of these stocks did well during one or both of the 2001 and 2008 recessions.

What makes a stock recession proof?

Companies that are recession-resistant will continue to have stable revenue streams regardless of whether the economy is up or down. Examples of such companies are those that sell consumer essentials, provide critical repair services, manufacture proprietary products, or provide mandated services.

Are luxury goods recession proof?

Luxury goods, despite the high price tag, are surprisingly resilient to recessions. ... Inflation does not necessarily go in tandem with recessions, but during such times of inflation, luxury goods demand rises as the good holds value and will not depreciate.

What two things are recession proof?

What two businesses have historically been recession proof, since time immemorial?” Silvio- “Certain aspects of show business, and our thing.” Tony- “Now that's it.

What is the most recession proof business?

1. Food and Beverage Business. The food and beverage industry is one of the most recession proof industries due to the fact that everyone still needs food and drinks to live.

Is it safe to invest in stocks?

Stocks aren't as safe as cash, savings accounts or government debt, but they're generally less risky than high-fliers like options or futures. Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it.

Should I sell my stocks before recession?

In theory, selling your stocks right before a market downturn is a smart strategy. ... The market may not crash, though, and stock prices could continue increasing. In that case, you've missed out on those potential earnings by selling.