Amazon founder and CEO Jeff Bezos is sounding the alarm.
In an interview with CNN, Bezos says the economy “doesn’t look good right now.”
“Things are slowing down. You are seeing layoffs in many sectors of the economy.”
And that means you may want to adjust your budget.
“If you are an individual considering buying a big screen TV, you may want to wait, save your money and see what happens,” recommends the billionaire. “The same goes for a new car, a refrigerator, or anything else. Just take some risk out of the equation.”
That is not a good sign for investors.
But not all companies are the same. Some, like the three listed below, could do well even if the economy slips into a recession.
do not miss
The utility sector is made up of companies that provide electricity, water, natural gas, and other essential services to homes and businesses.
The industry isn’t exciting, but it’s recession-resistant: whatever happens to the economy, people will still need to heat their homes in the winter and turn on the lights at night.
High barriers to entry protect the profits of existing utility companies. Building the necessary infrastructure to deliver gas, water or electricity is quite expensive and the industry is highly regulated by the government.
Thanks to the recurring nature of business, the sector is also known for paying reliable dividends.
If you’re looking for the best utility stocks, the names in the Select Utility Sector (XLU) SPDR Fund provide a good starting point for further research.
Health care serves as a classic example of a defensive sector thanks to its lack of correlation with the ups and downs of the economy.
At the same time, the sector offers a lot of long-term growth potential due to demographic tailwinds, particularly an aging population, and a lot of innovation.
Average investors can find it difficult to pick specific healthcare stocks. But healthcare ETFs can provide a diversified and profitable way to gain exposure to the space.
Vanguard Health Care ETF (VHT) provides investors with broad exposure to the healthcare sector.
To access specific segments within healthcare, investors can search for names like the iShares Biotechnology ETF (IBB) and iShares US Medical Devices ETF (IHI).
It may seem counterintuitive to have real estate on this list.
While it’s true that mortgage rates have been rising, real estate has actually proven its resilience in times of rising interest rates, according to investment management firm Invesco.
“Between 1978 and 2021, there were 10 separate years in which the Fed Funds rate increased,” says Invesco. “Within these 10 identified years, US private real estate outperformed stocks and bonds seven times and US public real estate outperformed it six times.”
Well-chosen properties can provide more than just price appreciation. Investors also earn a steady stream of rental income.
But you don’t have to be a homeowner to start investing in real estate. There are many real estate investment trusts (REITs) as well as crowdfunding platforms that can help you get started. become a real estate tycoon.
What to read next
More than 65% of Americans do not look for prices best car insurance deal — and that could cost you $500 a month
Your Cash Is Junk: Here They Are 4 simple ways to protect your money against red hot inflation (without being a stock market whiz)
It is very likely that you are paying more for home insurance. here is how spend less on peace of mind
This article is for information only and should not be construed as advice. It is provided without warranty of any kind.