3 Stocks to Avoid in the Event of a Recession
The United States economy isn't firing on all cylinders. With a shrinking gross domestic product, 9% inflation, rising interest rates, and a struggling stock market, it is more vital than ever to look for high-quality businesses and consider how well they would handle a potential downturn.
Three Motley Fool contributors have identified Shopify (NYSE: SHOP), Robinhood Markets (NASDAQ: HOOD), and Oatly (NASDAQ: OTLY) as businesses that may face outsize difficulty navigating rough economic waters despite otherwise intriguing operations.
Bradley Guichard (Shopify): Consumer sentiment is now lower than at any point during the Great Recession and the pandemic. That's right, the most trusted predictor of future consumer spending is flashing bright red. Add to this rising costs for supplies and labor and you get a disastrous setup for retail sales. Shopify doesn't directly sell to consumers, but it makes money from people who use its platform to do so, which spells trouble.
Source Fool.com
