Johnson & Johnson or UnitedHealth: Which Stock Is More Recession Proof?
The definition of a recession may vary, but one standard is when gross domestic product (GDP) falls for two consecutive quarters. This year, it fell in the second quarter, so the possibility exists that we may already be headed toward a recession.
Investors need to know how to protect their investments when a recession starts because it generally means less consumer spending, and that often leads to less revenue for companies. Recessions vary, and there's no such thing as a "recession-proof" stock. But certain sectors are more recession-resistant, such as consumer staples and healthcare. That's because both sectors involve less discretionary spending than travel, dining, or entertainment.
That brings us to two huge healthcare stocks investors often look at as safe havens in times of economic uncertainty: Johnson & Johnson (NYSE: JNJ) and UnitedHealth Group (NYSE: UNH).
Source Fool.com
