These recession resistant stocks and ideas could add a hedge to your portfolio as the economy slows in 2023. Banks have recently been in the headlines as they started selling assets the past few weeks with many analysts and economists pondering the reasons. JPMChase CEO Jamie Dimon only a day ago on CNBC questioned the consumer’s ability to withstand a recession.
“And so when you’re looking out forward, those things may very well derail the economy and cause a mild or hard recession,” Dimon said
Recession Resistant Stocks – Precious Metals
Precious metals miners continue their bullish trends as the dollar fades alongside U.S. Treasury yields as members of the U.S. Federal Reserve continue their fight against inflation.
Gold miners, gold stocks and precious metals ETFs are worth a look.
The VanEck Gold Miners ETF (GDX) is building the right side of a bullish cup pattern. Volume has been above average and showing signs of institutions accumulating shares. Always use a stop.
We’ve been actively adding to our silver position in recent weeks as the trend continues to look more bullish. The IShares Silver (SLV) Trust is building the right side of a cup pattern, with approximately 16% potential back to recent highs. We’ll add on dips from this point forward.
Additional recession resistant stocks that have historically done well during economic downturns.
- Walmart (WMT): The company performed very well in the last major recession, gaining more than 45% in the 2007-2008 period. The stock is recession-resistant, with a focus on consumer staples.
- McDonald’s (MCD): During times of economic difficulties, folks do turn to fast food. Though more expensive than prepared at home meals, the stock tends to be recession-resistant.
- Procter & Gamble (PG): Consumer staples do well during a recession; consumers need to purchase basic necessities like soaps, tissue, food, etc.
- Johnson & Johnson (JNJ): Tends to do well during recessions due to its product mix and focus on healthcare items.