Recessions happen within the market. The last one was during the COVID-19 pandemic that hit in March of 2020. In the 2000s, we have faced three different recessions, and each one comes with challenges, so make sure you are prepared for a downturn.
Recession-Proof Stocks: 13 Stocks to Buy to Weather the Storm
With much loss of jobs, people go to buying much cheaper things. So the industries that will do well are more affordable retail markets that sell consumer staples or even those discount retailers.
1. Walmart (WMT)When a recession hits, Walmart tends to do better. This is because their prices are low and therefore people would prefer to shop there. It saves them money, and they leave happy to be on a budget.
Target, like Walmart, beat the recession of 2008, and now they have put in the work into their online presence as well. They invested in their online sales. The First 3 Quarters of 2020 rose 10.8%, 24.3%, and 20.7%, respectably.
During the pandemic, one item that took off was cocktail mixers. As people were stuck at home, they no longer could go to bars. So the cocktail mixers sold by Pepsi Co. rose by 36% in 2020 alone.
The pandemic caused many people to be stuck at home. As a result, home projects increased for households. The revenue for Lowes rose 23.5% in the first nine months of 2020. In the 4th Quarter of 2020, online sales boomed by 106%.
In 2008, McDonald’s opened up 600 new restaurants. As a result, the sales of their products were higher in 2008 than they were in 2006 and 2007. This makes them a great company to hold to when things get nasty in the economy.
In two decades, Rollins has had uninterrupted growth. They are now the largest pesticide company in the U.S. and possibly the largest in the world. Rollins owns 20% of the pesticide market in the U.S.