Understand Recession-Proof Investments and Why They Are So Important

If you’re in a position to invest when the economy is at its worst, PennyGem’s Justin Kircher some industries that may be “recession proof.”

Transcript

00:00If you're in a position to invest when the economy is at its worst, here are some areas

00:08that may be recession-proof.

00:10Money Crasher says that when researching for investments, you'll probably hear low volatility

00:14funds, which shouldn't fluctuate much with the market.

00:17Some of those might include stocks of industries that will likely not face a lashing if the

00:21economy slides.

00:22Even if the economy is bad, there are still some areas that hinge on continuous needs.

00:26Investopedia suggests the healthcare industry, since even during a downturn, people still

00:31need care.

00:32People also still need to buy food and other goods.

00:34But the site cautions that a poor economy will likely change purchasing habits.

00:38In good times, consumers might be more likely to buy clothing from expensive retailers and

00:43dine at pricier restaurants, so Money Crasher recommends looking at discount retailers and

00:47low-cost food chains.

00:49The site says the same could be said of lower-cost tobacco and alcohol suppliers.

00:53Trades may not be broken during a recession, but spending on these areas could shift.

00:57While travel tends to dip in lean times, Investopedia says that goods still need to get to where

01:02they're going, so another investment opportunity may be in the freight and logistics sector.