Question

Investment strategies when the economy experiences a recession?

Answer 1

There are probably no such things as completely recession-proof investments – but there are several stock picking and investment strategies that usually prove effective during recessions.

Defensive stocks.

Dividend stocks.

Value stocks.

ESG strategies.

ETFs with short exposure.

Bonds.

Cash.

Answer 2

Explanation:

A better recession strategy is to invest in well-managed companies that have low debt, good cash flow, and strong balance sheets. Counter-cyclical stocks do well in a recession and experience price appreciation despite the prevailing economic headwinds.