RECEDE REASONABLY, RECESSION RECURS

A recession is typically defined as two consecutive quarters of negative economic growth. During a recession, consumers tend to spend less money, which can lead to a decrease in corporate profits and stock prices. However, certain types of stocks may perform better than others during a recession.

1. Defensive stocks: Defensive stocks are typically companies that provide essential goods and services, such as utilities, healthcare, and consumer staples. These companies tend to have stable earnings and may be less affected by economic downturns. Examples of defensive stocks include Johnson & Johnson, Procter & Gamble, and Coca-Cola.

2. Dividend stocks: Dividend stocks are companies that pay a portion of their earnings to shareholders in the form of dividends. These companies tend to be stable and may provide a source of income for investors during a recession. Examples of dividend stocks include AT&T, Verizon, and Exxon Mobil.

3. Technology stocks: While technology stocks may be volatile, some companies in the technology sector may perform well during a recession. For example, companies that provide cloud-based services may benefit as more companies look to cut costs by outsourcing IT functions. Examples of technology stocks include Microsoft, Amazon, and Adobe.

4. Gold and precious metals: During a recession, investors may flock to safe-haven assets such as gold and other precious metals. While gold prices can be volatile, owning gold or gold-related stocks may be a way to diversify a portfolio during a recession.