It's been a good year for investors. Since the start of 2023, the S 500 index has gained 14% while the tech-heavy Nasdaq Composite jumped 29% higher. The gains have many investors optimistic that the start of a new bull market is at hand.

Despite this, investors still have a reason for caution. Interest rates are at their highest level in nearly two decades, and how these rates could affect the economy over the next year is still unknown. Bank lending and commercial real estate are two segments of the economy that are certain to feel the impact of the Federal Reserve's aggressive interest rate hiking campaign. 

There are potential risks to the stock market right now. However, as long-term investors, we can't predict when (or if) a market downturn will occur. What you can do is own stocks in high-quality businesses that can weather downturns and thrive during economic expansions. Three resilient businesses to consider adding to your diversified portfolio today are Progressive (NYSE: PGR), Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), and Costco (NASDAQ: COST).

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Source Fool.com