Jim Cramer Advises to Recession-Proof Your Portfolio With Packaged Food Stocks

Now that we’re into the third quarter, we’re stating to see the pundits sound off on what the Q2 economic data will show – and some of them are openly saying that second quarter GDP will record a contraction. Coming on the heels of the 1.6% contraction in Q1, this will put the US in a technical recession. Along with rising inflation and the Fed’s turn to higher rates and monetary tightening, this adds up a darkening economic picture.

But Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, is "not totally convinced" that a recession is in the offing. He believes the economy retains enough strength to dodge that bullet – but he is not fully wiling to ignore the possibility. And so, Cramer has been looking for strong defensive stocks to shore up a portfolio’s position for the near- to mid-term.

His solution: “Food stocks can become recession-proof safe-havens. But you have to be selective, which means sticking with the winners that we know are doing well... nearly everybody seems convinced that we’re headed into a recession, and while I’m not totally convinced, that creates a much better backdrop for the ‘Steady Eddie’ packaged food stocks.”

With this in mind, we’ve used the TipRanks database to pinpoint two stocks in the packaged food sector.
$Hain Celestial(HAIN.US)$ $Hostess Brands(TWNK.US)$