Where to find stocks that are typically recession-proof
eToro’s Callie Cox joins TheStreet to discuss which industries to look into in order to find recession-proof stocks.
Transcript
00:00 I would like to talk about like recession proof stocks.
00:02 I know that's such a difficult conversation overall, but I wonder are there either recession
00:06 proof stocks, not necessarily that you like because I know what you do for eToro, but
00:10 are there kind of recession proof names you hear frequently cited over and over again,
00:15 especially in the state in the spirit of consumer staples or some of those immediate go tos
00:20 that people might gravitate towards in tightening economic conditions?
00:23 Well, I'm going to surprise you, J.D.
00:25 I actually think big tech fits this mold quite well.
00:28 If you look at big tech, they are some of the strongest, most financially durable companies
00:34 on the market.
00:35 And that's why I'm not surprised that we've seen investors gravitate toward them since
00:39 especially since March when we had the bank implosions and people got really worried about
00:43 the economy.
00:44 To be clear, there's no one big group of recession proof stocks.
00:48 If anybody tells you they know like what companies will survive a recession, they're probably
00:53 lying to you or making an educated guess.
00:56 But if you want to look at profit margins, you know, hordes of cash, if you want to look
01:00 at competitive advantages, big tech is the group that stands out in my mind.
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