If you’re in a position to invest when the economy is at its worst, PennyGem’s Justin Kircher some industries that may be “recession proof.”
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00:00 [music]
00:04 If you're in a position to invest when the economy is at its worst,
00:07 here are some areas that may be recession-proof.
00:10 Money Crasher says that when researching for investments,
00:12 you'll probably hear low volatility funds, which shouldn't fluctuate much with the market.
00:17 Some of those might include stocks of industries that will likely not face a lashing if the economy slides.
00:22 Even if the economy is bad, there are still some areas that hinge on continuous needs.
00:26 Investopedia suggests the healthcare industry, since even during a downturn, people still need care.
00:31 People also still need to buy food and other goods.
00:34 But the site cautions that a poor economy will likely change purchasing habits.
00:38 In good times, consumers might be more likely to buy clothing from expensive retailers
00:42 and dine at pricier restaurants, so Money Crashers recommends looking at discount retailers and low-cost food chains.
00:49 The site says the same could be said of lower-cost tobacco and alcohol suppliers.
00:53 Habits may not be broken during a recession, but spending on these areas could shift.
00:57 While travel tends to dip in lean times, Investopedia says that goods still need to get to where they're going,
01:02 so another investment opportunity may be in the freight and logistics sector.
01:06 sector.
01:06 (dramatic music)