What Makes a Stock Recession-Proof?

As many financial experts and CEOs forecast a full-blown economic downturn in the not-too-distant future, spurred by tighter monetary policy from central banks, I think it's a good idea for investors to find ways to protect their portfolios in this type of potential scenario. This will provide much-needed peace of mind in tough times. 

With that being said, stocks and companies that are recession-proof have one important characteristic in common that investors should know. Let's take a closer look at an apt example to provide more clarity. 

I believe the No. 1 sign of a stock that is recession-proof is that demand for the products and services that the business sells remains strong in an adverse economic situation. From a customer's perspective, this means they simply cannot go without the items that the company offers no matter what the economy is doing. In fact, demand stays stable or might even increase. 

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Source Fool.com