This Indicator Suggests a Recession Is Coming. Here's How to Insulate Your Portfolio

The Leading Economic Index (LEI), a notable economic gauge by the nonprofit Conference Board, declined by another 1% in December. That was steeper than the 0.7% drop economists expected. It was the 10th straight monthly decline for the LEI. That's notable because it often peaks about a year ahead of a recession.

While it's possible that the economy could avoid a recession, a recent poll of economists by The Wall Street Journal put the probability of a recession at 61% this year. This means investors should consider taking steps to help insulate their portfolio from a potential economic downturn.

One way to do that is by investing in companies with relatively recession-proof businesses. These companies benefit from fairly steady demand for their products and services, enabling them to produce resilient profits. Three economically durable options to consider are Agree Realty (NYSE: ADC), NextEra Energy (NYSE: NEE), and Republic Services (NYSE: RSG).