What Are The Best Stocks And Shares In a Recession

The health of the stock market is one of the biggest indicators of an impending economic recession. Many view investments in stocks and shares during a recession to be nothing other than pure madness. However, for wise investors, a contraction in the economy can be the perfect time to buy into investments at bargain prices.
Here’s a short guide to stock market investing during a possible 2008 recession.

How Do I Pick The Right Stocks In A Recession?

The best shares to pick are large stable companies that have healthy balance sheets, no debt and plenty of cash reserves to avoid scaling back when tougher economic times are ahead.

Which sectors are the best to invest in during a recession?

Historically, the industries that thrive during an economic recession are the consumer staples and items that people can’t do without. These include:

energy - electric, gas, alternative

food

vice stocks or sin stocks - ie cigarettes, alcohol, gambling historically do well in periods of economic uncertainty

What about commodities, bonds, etc

In a recession many choose to invest in gold. It is seen as the safest, most indestructible commodity available and typically throughout history has been the wise option to invest in during times of economic hardship.

Bonds are also seen as a good but safe choice for recession investing. A 10 year US Treasury bond will see a return of around 5% - not exactly amazing but a healthy positive return at a time where stocks may be much more volatile.