Stock sectors to own through an economic recession
posted July 1, 2008 - 3:19pmThe American economy is on the brink of recession. What kind of stock sectors should you invest in through a recession? These three sectors will provide investors with a much-needed security net for investing in stocks through a recession.
1. Consumer non-cyclicals- Think Coca-Cola, Altria, Kellogg, etc. These types of companies aren't dependent on a strong economy to grow their bottom line profits.
2. Drug stocks- Johnson and Johnson, Pfizer, Merck, etc. Drug companies are in a great position because patients must take their medicine regardless of the broader economy.
3. Utility stocks- Exelon, Emerson, etc. The utility companies are going to get their checks regardless of the economic situation, and if they don't you won't have any power.
The point here is that during an economic recession investors should be looking into sectors where the companies have products or services that consumers have to have. Discretionary spending plunges during recessions, but the necessities will still always be there!

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