Thoughts how a recession may affect the market?
Posted: Monday Jul 24 12:16:57PM 2006
Typically in a recession, a few types of stocks tend to outperform - ones where demand for company products will remain unaffected, or to less of a degree than other companies. Some examples are utilities (including the big telecom providers); financials, like banks; and consumer and household staples (e.g. food products and basic goods, as opposed to electronics or discretionary things). None of these are going to give you huge gains, but any gain can be nice when everything else is falling.