These 5 Top Stocks Are Set to Outperform in a Recession
The Federal Reserve is grappling with elevated inflation by taking a hawkish stance and raising interest rates. The threat of a recession is real, and many consider it inevitable. This is the bad news. The good news is that some stocks perform well no matter what, others perform better historically during economic difficulty, and others go on sale.
You may be wondering, why invest at all during a downturn? Studies show that staying invested produces much greater returns than trying to time the market. It turns out that missing just a few of the largest "up" days crushes long-term profits. And those rallies often come when we least expect them. The best move for long-term investors is to have a disciplined strategy and stay the course.
Recessions come about for various reasons, and each has unique aspects -- including today's economic slowdown. But no matter the cause, they generally result in stocks falling in price. Yes, it's nearly impossible to predict an exact market bottom, but a dollar-cost averaging strategy can reduce risk. There are several tried-and-true methods to take advantage of this market drop:
Source Fool.com
