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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00:00If you're in a position to invest when the economy is at its worst, here are some areas
00:08that may be recession-proof.
00:10Money Crasher says that when researching for investments, you'll probably hear low volatility
00:14funds, which shouldn't fluctuate much with the market.
00:17Some of those might include stocks of industries that will likely not face a lashing if the
00:21economy slides.
00:22Even if the economy is bad, there are still some areas that hinge on continuous needs.
00:26Investopedia suggests the healthcare industry, since even during a downturn, people still
00:31need care.
00:32People also still need to buy food and other goods.
00:34But the site cautions that a poor economy will likely change purchasing habits.
00:38In good times, consumers might be more likely to buy clothing from expensive retailers and
00:43dine at pricier restaurants, so Money Crasher recommends looking at discount retailers and
00:47low-cost food chains.
00:49The site says the same could be said of lower-cost tobacco and alcohol suppliers.
00:53Trades may not be broken during a recession, but spending on these areas could shift.
00:57While travel tends to dip in lean times, Investopedia says that goods still need to get to where
01:02they're going, so another investment opportunity may be in the freight and logistics sector.