Which stock sectors do best in a recession? (2024)

Which stock sectors do best in a recession?

A good investment strategy during a recession is to look for companies that are maintaining strong balance sheets or steady business models despite the economic headwinds. Some examples of these types of companies include utilities, basic consumer goods conglomerates, and defense stocks.

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What are the best performing stock sectors in a recession?

Historically, the industries considered to be the most defensive and better placed to fare reasonably during recessions are utilities, health care, and consumer staples.

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What are the best stocks during a recession?

7 Stocks That Outperform in a Recession
StockImplied upside from Feb. 21 close
Accenture PLC (ACN)3.6%
T-Mobile US Inc. (TMUS)12.8%
Walt Disney Co. (DIS)11.5%
Netflix Inc. (NFLX)6.4%
3 more rows
Feb 22, 2024

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What is the best industry to be in during a recession?

Examples of businesses and industries that historically have been recession proof include:
  1. Financial advisors and accountants. ...
  2. Child services. ...
  3. Health care. ...
  4. Auto repair. ...
  5. Property management. ...
  6. Home repair/contractor. ...
  7. Cleaning services. ...
  8. Grocery store.
Aug 22, 2023

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Which sector is most affected by recession?

An economic recession can have a significant impact on businesses and industries. Some sectors, such as manufacturing and travel, are particularly vulnerable to economic downturns.

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What sectors to invest in 2024?

Read on to discover Fidelity managers' highest-conviction ideas across 11 sectors, for 2024 and beyond.
  • Technology. Communication. services. Consumer. discretionary. Industrials.
  • Health care. Real estate. Materials. Energy.
  • Financials. Utilities. Consumer. staples.

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Does gold do well in a recession?

Due to its reputation for being a safe-haven asset, gold tends to perform well during a recession. For example, when the stock market collapsed in 2007, investment demand for gold spiked and continued to rise, and gold doubled in value between 2007 and 2011.

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What stocks do poorly in a recession?

Worst S&P 500 Stocks During Recessions
CompanySymbolAverage % stock ch. last five recessions
Boeing(BA)-33.4
Baker Hughes(BKR)-31.2
Schlumberger(SLB)-30.8
American Electric Power(AEP)-13.5
2 more rows
Oct 6, 2022

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What stocks recover the most after a recession?

Top investments coming out of a recession
  • Cyclical stocks. Cyclical stocks are virtually the definition of stocks that get hit hard going into a recession, as investors anticipate a peaking economy and begin to sell them. ...
  • Small-cap stocks. ...
  • Growth stocks. ...
  • Real estate. ...
  • Consumer staples. ...
  • Utilities. ...
  • Bonds.
Oct 18, 2023

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What not to buy in a recession?

During an economic downturn, it's crucial to control your spending. Try to avoid taking on new debt you don't need, like a house or car. Look critically at smaller expenses, too — there's no reason to keep paying for things you don't use.

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Who benefits from a recession?

Higher interest rates that often coincide with the early stages of a recession provide an advantage to savers, while lower interest rates moving out of a recession can benefit homebuyers. Investors may be able to find bargains on assets that have decreased in price during a recession.

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Who made money during the Great Recession?

Warren Buffett, business magnate and investor

He also bought convertible preferred shares in Swiss Re and Dow Chemical. By 2011, Buffett had made $10 million from the 2008 financial crisis. “Be fearful when others are greedy. Be greedy when others are fearful.”

Which stock sectors do best in a recession? (2024)
Which sectors are least affected by recession?

Defensive sectors like health care, staples, and utilities could be less vulnerable to recession risk. Lower correlation to economic cycles, lower rate-sensitivity, higher cash buffers, and lower capital expenditures are all key factors that support their resilience.

What stocks did well during 2008 recession?

Luckily, there are some stocks that are more resilient to the negative effects of a downturn. Three stocks that outperformed the S&P 500 during the 2007-09 Great Recession were Gilead Sciences (GILD 0.29%), McDonald's (MCD -0.53%), and Walmart (WMT 0.26%).

Which sectors are least affected by inflation?

Important industries which are least affected by inflation are the following:
  • Real Estate. The impact of inflation on real estate has been beneficial for the overall development of the real estate business. ...
  • Financial companies. ...
  • Healthcare.
Jan 12, 2023

What are the top 5 sectors?

Best Performing Sectors in India
S.No.Top Sectors in Indian Stock Market
2.Renewable energy Sector
3.IT Sector
4.Real Estate Sector
5.FMCG Sector
1 more row
Jan 19, 2024

What is the safest investment with highest return?

Safe investments with high returns: 9 strategies to boost your...
  • High-yield savings accounts.
  • Certificates of deposit (CDs) and share certificates.
  • Money market accounts.
  • Treasury securities.
  • Series I bonds.
  • Municipal bonds.
  • Corporate bonds.
  • Money market funds.
Dec 4, 2023

What sectors are not doing well?

The S&P 500 consumer staples, utilities and healthcare sectors have lagged the consumer discretionary and the communication services sectors by the largest margin on record.

Is gold or silver better in a recession?

Silver prices were relatively stable during this same period. In contrast, during the 2001 recession, silver fluctuated around $3/oz., while gold gained about 7.3%. This suggests that both metals are good investments during recessions because they perform well compared to global stocks.

Does gold and silver do well in a recession?

Precious metals, like gold or silver, tend to perform well during market slowdowns. But since the demand for these kinds of commodities often increases during recessions, their prices usually go up too.

How much will gold be worth in 2025?

Key takeaways

Gold prices are expected to dip in the near term before climbing to new highs later in the year, with a forecasted peak of $2,300/oz in 2025.

What sectors did well in 2008?

These are some of the companies that survived and grew during the 2008 recession:
  • Dollar Tree (discount stores)
  • Walmart (discount stores)
  • Hasbro (leisure and kids products)
  • Amgen (health)
  • Edwards Lifesciences (health)
  • H&R Block (personal services)
Jul 15, 2022

Should I sell my stocks before a recession?

When things are looking bleak, consider holding on to your investments. Selling during market lows can be one of the worst things you can do for your portfolio — it locks in losses.

What to do with your money in a recession?

Consider these five preemptive strategies that may help protect your finances in a recession.
  1. Revisit your budget. Keeping close tabs on your budget is a cornerstone of good financial health, especially when inflation is high. ...
  2. Pad your emergency savings. ...
  3. Tackle debt. ...
  4. Consider staying invested. ...
  5. Maintain focus on your goals.

Should you hold stocks in a recession?

Bottom line. If you're able to increase investments in the stock market during a downturn, it can be a great way to boost your long-term returns and achieve your investment goals.

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