Amid recession concerns, investors may want to consider defensive stock options

by | Jun 14, 2023 | Recession News

Amid recession concerns, investors may want to consider defensive stock options




#recession #youtube #yahoofinance
Which stocks offer a defensive play in case of a recession? Jim Tierney, AB CIO of Concentrated U.S. Growth breaks down which industrial sectors are most poised to protect investors amid a volatile economic situation.

Subscribe to Yahoo Finance:

About Yahoo Finance:
At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life.

Yahoo Finance Plus: With a subscription to Yahoo Finance Plus get the tools you need to invest with confidence. Discover new opportunities with expert research and investment ideas backed by technical and fundamental analysis. Optimize your trades with advanced portfolio insights, fundamental analysis, enhanced charting, and more.
To learn more about Yahoo Finance Plus please visit:

Connect with Yahoo Finance:
Get the latest news:
Find Yahoo Finance on Facebook:
Follow Yahoo Finance on Twitter:
Follow Yahoo Finance on Instagram:
Follow Yahoo Finance Premium on Twitter: …(read more)


BREAKING: Recession News

LEARN MORE ABOUT: Bank Failures

REVEALED: Best Investment During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing


Defensive Stock Plays for Investors to Consider Amid Recession Concerns

As the economy continues to cope with the impact of the COVID-19 pandemic, investors are growing anxious about a looming recession. One way to weather the storm is to consider investing in defensive stocks, which are companies that tend to perform well in times of economic uncertainty.

Defensive stocks are typically found in industries that provide essential goods and services, such as healthcare, utilities, and consumer staples. These companies tend to have stable earnings, strong cash flows, and lower volatility than more cyclical stocks. Here are some defensive stock plays for investors to consider in the current economic climate:

See also  This is Beyond a Recession: A Look at What's Worse

1. Healthcare

The healthcare sector is a defensive play that investors should consider. Healthcare stocks have shown resilience during times of economic turmoil, as people tend to prioritize their health and well-being even during tough times. The sector also benefits from long-term demographic trends, including an aging population that requires more healthcare services.

Investors can look to healthcare companies such as Johnson & Johnson, UnitedHealth Group, and Pfizer. These companies have diverse product portfolios, strong cash flows, and significant resources to invest in research and development.

2. Utilities

Utilities are another defensive sector that investors should consider, as they provide essential services that consumers cannot do without. Utility companies operate in regulated markets, which means they have stable revenue streams and predictable earnings. These factors make utilities a good investment during a recession or other economic downturn.

Investors can look to companies such as Dominion Energy, Duke Energy, and American Electric Power. These utilities have a long history of steady dividends, which can provide a reliable source of income during tough economic times.

3. Consumer Staples

Consumer staples are products that people use on a daily basis, including food, beverages, household items, and personal care products. These products tend to be recession-resistant, as people continue to purchase them even during tough economic times.

Investors can look to companies such as Procter & Gamble, Coca-Cola, and PepsiCo. These companies have strong brand recognition, diverse portfolios, and significant resources to invest in marketing and research and development.

4. Telecom

Telecom is another defensive sector that investors should consider. Telecom companies are in a unique position to benefit from the increasing demand for internet and mobile connectivity. As people continue to work from home and rely on technology to stay connected with friends and family, telecom companies are well-positioned to benefit from this trend.

See also  Tips for Growing Your Business in Tough Economic Times

Investors can look to companies such as Verizon, AT&T, and T-Mobile. These telecom companies have solid revenue streams, strong cash flows, and significant resources to invest in expanding their networks.

In conclusion, defensive stock plays are a good option for investors looking to protect their portfolios during a recession or other economic downturn. Healthcare, utilities, consumer staples, and telecom are all sectors that historically perform well during tough economic times. Investors should do their research and consider their risk tolerance before investing in any defensive stocks.

Truth about Gold
You May Also Like

0 Comments

U.S. National Debt

The current U.S. national debt:
$35,951,601,173,936

Source

ben stein recessions & depressions

Retirement Age Calculator

  Original Size