What are examples of stocks or investments that perform the best during a recession

Stocks and investments that tend to perform well during a recession include:

1. Healthcare Stocks:

• Healthcare is considered recession-resistant due to the fact that people will always need medical care, making it a stable industry.
• Regeneron Pharmaceuticals and Gilead Sciences saw significant stock price increases during the first quarter of 2020 due to the hype surrounding COVID-19 treatments.

2. Consumer Staples:

• Companies in the consumer staples sector, such as Kellogg, Hormel Foods, General Mills, Costco, and Colgate, are known for their resilience during economic downturns.

3. Information Technology:

• Information technology companies, particularly those in the cloud and software sectors, can perform well during recessions.
• Digital Realty Trust and Equinix, involved in data centers, may benefit from the trend towards remote work and online services during economic downturns.

4. Financial Services:

• Financial services, such as accounting and financial consulting, often see an increase in demand during recessions.
• Enact Holdings, with its financial services focus, could be a potential candidate for a recession-resistant investment.

5. Essential Goods and Services:

• Companies that supply essential goods and services, such as healthcare, utilities, and telecommunications, are less likely to see a decline in revenue during a recession due to their price inelasticity.

6. Discount Retailers:

• Discount retailers like Walmart have a strong market position and the ability to offer lower prices, which can help them weather economic downturns.

7. Gold:

• Gold is often seen as a safe-haven investment and can perform well during economic downturns as investors seek protection from market volatility.

8. Dividend-Paying Stocks:

• Dividend stocks, particularly those in defensive sectors like utilities, can provide a source of income and stability during a recession.

These examples represent a diverse range of industries and sectors that have historically performed well during recessions. However, it's important to note that the performance of individual companies within these industries can vary, and investors should conduct their own research and analysis before making investment decisions.