Down 13% Year to Date, This Company's Business Model Is Recession-Proof
The S&P 500 rallied 93% from April 1, 2020 through the end of 2021, but since the start of the new year, stocks have been underwater. The index has sunk 20% year to date in the wake of the Federal Reserve's interest rate hikes to buck record-high inflation levels. As a result, many investors are starting to fear that the aggressive monetary policy is going to pull us into a recession.
With financial markets likely to fluctuate for the foreseeable future, investors should turn to businesses that are poised to succeed irrespective of the macro environment. Costco Wholesale (NASDAQ: COST) is just such a company. The membership-only retailer has rewarded long-term shareholders wonderfully over the years, generating a total return of 579% in the past decade.
As uncertainty continues to weigh upon the global economy, let's examine why Costco could be a wise investment right now.
Source Fool.com
