Hey, it's Ryan again.
Did you know that recessions are NATURAL, cyclical events in the stock market?
That means we can always expect them to occur and to be temporary (9-18 months).
"Winter is coming," says Tony Robbins, well-known author, speaker, and entrepreneur
So, if you find yourself vulnerable to the cold, the best thing you can do for yourself is to take advantage of this time to prepare for this year's economic "winter" and for the next one. (Because you can count on it coming back!)
A defensive stock (aka recession-proof stock) is a stock that provides dividends and stable earnings regardless of how the market is doing.
Historically, defensive stocks keep the economy afloat during a slower, declining market, and sometimes perform better than other stocks, due to slightly higher demands.
Defensive stocks typically don't grow with economic expansion.
Think of stocks like Walmart, Johnson & Johnson, or Coca Cola.??
Another way to think about it is, people tend to
stay in their homes and consume a bit more during the winter (recession) compared to the summer (growth/expansion).
So if you want to take advantage of this "winter", I highly recommend you check out my article here showing 3 hot recession-proof stocks
Until next time,