3 Top Stocks to Recession-Proof Your Portfolio
If you want to recession-proof your portfolio, the best companies to own are those with rapid growth that's not related to higher employment or other favorable economic conditions. Instead, it should be related to offering a fundamentally superior value proposition for customers.
The much more attractive offering will result in rapid customer adoption and large market-share gains, such that growth is almost assured, even if the overall economic pie is shrinking due to a recession. Three companies that meet this criteria are Amazon (NASDAQ: AMZN), Peloton (NASDAQ: PTON), and Chewy (NYSE: CHWY).
Amazon's sales growth could certainly slow during a downturn, but the company is arguably recessision-resistant over the long haul simply because the growth of e-commerce is still in its early innings. According to the U.S. Census, e-commerce was responsible for an 11.5% share of total retail sales in the U.S. in the first quarter of 2020.
Source Fool.com
