Stocks to Buy and Hold
During a Recession
When the economy is in a downturn and headed toward a recession, what can you do to keep your investment dreams alive? Our advice? Don’t stop investing. There are several viable stocks that don’t wildly fluctuate with the economy and are sure to continue to grow even when a recession is on the horizon. Let’s take a look at some of the stocks you can purchase that will continue to grow your wealth even through a recession.
Even though the economy seems to be losing ground, one industry that continues to thrive is the healthcare industry. No matter the state of affairs, people still get sick and need medication. Investing in healthcare companies and medicine manufacturers is one of the strongest decisions you can make for solid stocks. Some of your options include:
- UnitedHealth Group (NYSE: UNH)
- Pfizer (NYSE: PFE)
- Johnson & Johnson (NYSE: JNJ)
- CVS Health (NYSE: CVS)
- Walgreens Boots Alliance (NASDAQ: WBA)
Believe it or not, retail companies are also a smart buy, considering people in a recession still shop, however, they shop smart. They shop at cheaper stores as well as stores that offer items in bulk. If you purchase your stocks with this in mind, you’ll tap into the vast potential of stable retail companies. These retail stocks include:
- Dollar General (NYSE: DG)
- Dollar Tree (NASDAQ: DLTR)
- Costco (NASDAQ: COST)
- Walmart (NYSE: WMT)
- Home Depot (NYSE: HD)
Utility companies are also a good bet, as there is always a demand for utilities such as water, sewer, electricity, gas, waste management, and so on. Families might cut corners as far as spending goes, but they still want their lights on at night and a hot shower in the morning. Companies that you might consider investing in would include:
- Waste Management (NYSE: WM)
- American Water Works (NYSE:AWK)
- Brookfield Infrastructure (NYSE:BIPC)(NYSE:BIP)
- NextEra Energy (NYSE:NEE)
- Williams Company (NYSE:WMB)
Companies that deal with goods include goods people cannot live without. These staples consist of household products, personal products, and food people prepare at home. Eating out at restaurants is one of the first expenses to be scratched off the budget, so investing in the food industry is a smart move. These stocks include:
- General Mills (NYSE:GIS)
- Kroger (NYSE:KR)
- Tyson Foods (NYSE: TSN)
- Procter & Gamble (NYSE:PG)
- PepsiCo (NASDAQ:PEP)
When it comes to investing, holding a diversified portfolio is key. Having a diversified portfolio doesn’t mean you hold a lot of stocks, but that the stocks you do hold represent a cross-section of several different industries, including those that can withstand a recession. In fact, it is highly recommended by investment firms to hold stocks such as these, as they are financially strong. You might look into holding a few blue-chip stocks as well, which are stocks from high-quality companies that continue to do well and hold strong in the stock market year after year.
The threat of a recession doesn’t mean you have to pump the brakes on your investment plans, rather it means you’ll need to change tactics. Take a look at investing in industries people absolutely cannot live without, and you’ll continue to build wealth even in an economic downturn.
To learn more about investing, closing the racial wealth gap, and growing generational wealth for Black and brown families, please visit Financial Joy School and become a part of our financial family.