Recession-Proof Industry

Recession, looks like is a unavoidable word in Year 2023. As talk of a recession hangs over the economy, many people are worried about the possibility of finding themselves out of work. During times of economic turbulence, investors attempt to shield themselves from assets that are declining in value and some of the worst performing assets tend to be cyclical stocks – stocks that are strongly correlated to the underlying economy. However, defensive stocks have often outperformed the overall equity market during market crashes with their desirable non-cyclical qualities.

For investors,  seeking out defensive stocks during a recession help mitigate investing risks. These companies tend to have consistent cash flow with limited volatility and a history of strong business performance regardless of market conditions.

Healthcare sector is one of those industry. Two stocks to consider in healthcare are firstly CVS Health (CVS), Even during an economic downturn, people will need to visit the local pharmacy to refill prescriptions and purchase medication.

The other stock is Pfizer (PFE). As evidenced during the pandemic, this company makes pharmaceutical drugs and vaccines that cover various health issues.

Above are just my 2 cents worth of opinion. More importantly, continue to invest in companies you believe in, with defensive ones if any, to be in your priority stock consideration in Year 2023.