I’ve been talking about how it makes sense to plan for an economic downturn — even if it doesn’t happen or the effects are mild.
And that means looking for mega trends with recession-fighting power.
With the yield curve inverted, commodity prices dropping and the housing market slowing down, I think there’s a real possibility that the economy soon deteriorates to the point that the National Bureau of Economic Research (NBER) rings the alarm.
History shows that certain pockets of the market are more resistant to recessions than others. Their profits are less affected by the ups and downs of the economic cycle.
When the economy gets shaky, investors rotate into these defensive sectors.
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