Which stocks perform best in a recession?

Some stock market sectors, like health care and consumer staples, generally perform better than others in a recession. Healthy large cap stocks also tend to hold up relatively well during downturns. Investing in broad funds can help reduce recession risk through diversification.

Should you invest in stocks during a recession?

In times of recession, this is one way to invest in several companies in the most resilient sectors while avoiding concentrating your risk in any one company. If one company in the fund performs poorly, the strong performances of other companies can offset the losses of the underperformer. “Most people aren’t stock pickers,” Fernandez says.

What is a good investment strategy during a recession?

A good investment strategy during a recession is to look for companies that are maintaining strong balance sheets or steady business models despite the economic headwinds. Some examples of these types of companies include utilities, basic consumer goods conglomerates, and defense stocks.