As an investor, it’s essential to consider the impact of a possible recession on your portfolio. While it’s difficult to predict when a recession may occur, there are certain sectors that tend to perform better than others during economic downturns. In this article, we’ll discuss five sectors that are generally considered recession-resistant and provide two ticker examples from each sector along with their performance during the last US recession, which lasted from December 2007 to June 2009.
1. Healthcare
Healthcare is a defensive sector that tends to perform well during recessions as people continue to require medical care regardless of the economic situation. Here are two examples of tickers to consider:
– Johnson & Johnson (JNJ): JNJ is a diversified healthcare company that produces medical devices, pharmaceuticals, and consumer health products. During the last recession, JNJ’s stock price declined by about 15% from December 2007 to March 2009 but then recovered and ended up gaining 8% by the end of June 2009.
– UnitedHealth Group (UNH): UNH is the largest health insurer in the United States, providing coverage to more than 50 million people. During the last recession, UNH’s stock price declined by about 38% from December 2007 to March 2009 but then recovered and ended up gaining 24% by the end of June 2009.
2. Consumer Staples
Consumer staples are products that people need to buy regardless of their financial situation, such as food, beverages, and household products. Here are two examples of tickers to consider:
– Procter & Gamble (PG): PG is a consumer goods company that produces household and personal care products, such as Tide laundry detergent and Crest toothpaste. During the last recession, PG’s stock price declined by about 17% from December 2007 to March 2009 but then recovered and ended up gaining 6% by the end of June 2009.
– Walmart (WMT): WMT is a retail company that operates a chain of discount department stores and grocery stores. During the last recession, WMT’s stock price increased by about 17% from December 2007 to March 2009 and then gained an additional 16% by the end of June 2009.
3. Utilities
Utilities are considered a defensive sector as people still need electricity and gas regardless of the economic climate. Here are two examples of tickers to consider:
– Dominion Energy (D): D is a utility company that provides electricity and natural gas to customers in the eastern United States. During the last recession, D’s stock price declined by about 27% from December 2007 to March 2009 but then recovered and ended up gaining 9% by the end of June 2009.
– NextEra Energy (NEE): NEE is the largest producer of wind and solar energy in the United States and also provides traditional electricity services. During the last recession, NEE’s stock price declined by about 20% from December 2007 to March 2009 but then recovered and ended up gaining 29% by the end of June 2009.
4. Technology
While it may seem counterintuitive to consider investing in technology during a recession, there are still companies within the sector that can perform well. Here are two examples of tickers to consider:
– Microsoft (MSFT): MSFT is a technology company that produces software, hardware, and gaming products. During the last recession, MSFT’s stock price declined by about 32% from December 2007
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