What stock would you buy now, and would it be resistant to a recession if were to happen?

Answer 1

The question is reasonable, but a little contradictory. Investors have been looking for these recession resistant stocks and buying them for some time now. So they are all a little overpriced now.

Some of the most recession resistant stocks are consumer staples like Coke, Pepsi, Proctor & Gambel, Kimberly Clark. These are great, but they've already gone up big, so I'm not sure they are a good buy now.

I've heard a pro suggest Unilever (UN) recently because it is less well know than the above companies, but I've not researched it myself.

Stocks that I'd consider buying right now on a down market day are Chesapeake Energy (CHK) and Blackboard (BBBB). Their prices are good but not great so don't overdo it. CHK is a nat gas producer which should be recession resistant (mostly: chem manufacturer's demand could slump a little). Nat gas is moderately cheap now but should increase over time.

BBBB sells into the university market which should be moderately recession resistant. They don't have inflationary commodity costs and their growth is very good, but not unbelievably good like some small cap stocks, which is why their price is down a bit.

Answer 2

I would recommend investing in gold or silver. In times of recession and depression investors often see gold as a "safe haven". Traditionally gold is inflation proof as there is a hard value attached to it. When the value of paper currency goes down the value of gold tends to go up. And in times of recession central banks like to infuse the market with liquidity (or money) this will cause inflation and lower the price of the dollar. However, there are several options when it comes to investing in gold and silver.
You could buy stocks of a gold and silver mining company. This method has local risks associated with it, such as land disputes or ornamental issues dealing with the specific company.
You could buy an Gold exchange-traded fund such as the Central Fund of Canada (TrontoStockeXchange CFE.A , AmericanStockExchange CFE).
You could buy the physical gold or silver in coin or bullion form.
You could buy gold certificates. (You own gold in a far away bank).
Or you could buy electronic gold currency. This is a like money that uses the "gold standard."
Hopefully this helps you. If you really think there will be a bad recession, like the great depression in magnitude I would recommend the physical gold. If you think it will be somewhat minor like the 70's and 80's then I would recommend the gold exchange traded fund. Good Luck.

Answer 3

I like Exxon-Mobil. It would take a lot before people would give up buying gasoline for their cars, it's a world-wide company, and it pays a dividend, so you make money whether the price rises or falls.

Answer 4

Stocks that have consistently yielded a dividend over many years. GE for example.

Answer 5

companies with most of their sales outside the US and in local currencies.

example: despite the current dip in prices, KO [Coca-Cola] has been going up rather steadily.

this is just an idea, not a "best choice" I have 7800 issues in my database.

Answer 6

"Sin stocks":
tobacco companies, liquor companies, breweries, firearms manufacturers, etc.
When the going gets tough people give up luxuries, but not liquor.