2 Stocks to Avoid In a Recession

The U.S. economy has now logged two consecutive quarters of negative GDP growth. While economists may argue whether the U.S. is in a recession, it's clear that consumers and companies are starting to pull back, at least in some areas.

Some companies are more recession-proof than others. Any company that sells something that people need while offering a strong value proposition can potentially do well even as the economy slumps. Companies that do neither are in trouble.

Connected fitness company Peloton Interactive (NASDAQ: PTON) and home goods online retailer Wayfair (NYSE: W) are both already suffering from slumping demand, and a recession isn't going to be kind to either. Here's why avoiding these two stocks may be a good idea.

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Source Fool.com