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Recession Investments. We have been talking about a recession as a society for over a year. And it just doesn’t seem to arrive. Much to the chagrin of the Federal reserve bent on breaking something in the economy so that inflation will come down. Perhaps inflation is coming, no one knows. If do have one, what are some recession investments that can weather the storm?
An Abundance Agenda
I would rather see us humans develop an abundance agenda versus breaking the economy. This would increase the supply of things people need and thus bring the prices to more affordable levels. And I mean more housing, more healthcare, more schools and more eggs!
I am not the King
But I am not the King, I am one voice and mind among millions.
Recession Investments Idea #1 – Consumer Staple Stocks
Consumer staple stocks are investments in direct-to-consumer companies that sell essential goods such as food, drinks, and household and personal care products.
“The logic here is simple: they are always in demand,” Kralow said. “Even in an economic downturn, people won’t stop buying the essentials, so the companies selling them are far less likely to see revenue fall.
“Additionally, publicly-traded companies that sell consumer staples are often well-known legacy businesses with a long history of success,” he continued. “They have a sizable share of the market, limited competition among companies of their stature and steady prices — which is important during a recession when consumers are most sensitive to price changes.”
My favorite is Walmart at the moment which we talked about as one of our 2023 WOW stocks.
Recession Investments Idea #2 – Healthcare
Healthcare is another sector that tends to be recession proof. If a person gets sick or needs care, they need it no matter the way the economic winds are blowing. I personally like Pfizer and Johnson & Johnson. These are part of my $25k Year Dividend Income Portfolio. Another approach is to capture a fund or ETF that includes companies from this sector.
Recession Investments Idea #3 – Quality REIT’s w/ Dividends
The 3rd area I will double down on during a recession are high quality Real Estate Investment Trusts that have a long track record of dividends. Names like Realty Income (O) come to mind.
Vanguard RE ETF (VNQ)
Check out the Vanguard RE ETF. I like to study the top holdings and understand why they are so prominent in this great etf. This is another way I gain exposure to the lucrative real estate sector.
Why Real Estate?
I would sure like to invest in real estate, but can’t even hammer a nail or unclog a toilet!
This is a common refrain heard from many that fear jumping into real estate investing due to the high level of management required. But those nice stable investment returns and appreciation of capital are sure nice, it is like the demand cannot keep up with supply when it comes to real estate. But if you do not want to respond to maintenance calls, have you heard of a REIT (Real Estate Investment Trust)? This article will talk all about REITs and compare them to traditional “hands on” real estate investing. Real Estate, as you can see is a Great Recession Investments Vehicle!
I write a lot about real estate because I have a passion for it as a thing and as an investment vehicle. It may have something to do with my arts background, but I enjoy a well designed and well maintained property. Think about how essential real estate is to our modern lives. It keeps us safe, healthy and provides a platform for some of our greatest family memories. It is the grocery store, mall, coffee shop, warehouse, office complex, fast food joint, pharmacy, etc. Real estate in general is an excellent asset class in many ways. But it is important to consider all the pros and cons of the different ways to invest in real estate. In this article we focus on one that can be very easy to enter and easy to manage, high quality real estate investment trusts, or REITs.