Worried About Another Market Crash? Buy Some ICE
Recessions are generally tough on financial stocks. Banks will experience bigger credit losses and real estate investment trusts (REITs) will see declining rent collections. If we see another market crash, the Federal Reserve's tools for managing it will be limited since interest rates are already at or near zero. So, if you still want to have some exposure to financial stocks in your investment portfolio, which ones are the best performers in a recession? The answer comes down to credit risk, and which stocks have the least amount.
The Intercontinental Exchange (NYSE: ICE) is known primarily for owning the New York Stock Exchange. But Intercontinental Exchange (ICE) also owns some commodity exchanges and fixed-income operations. The exchange business is the classic example of a fee-based business that doesn't rely on taking credit risk. Exchanges facilitate trades, ensuring the buyer has the money and the seller has the securities. The exchange collects fees and sells the data to media outlets, brokers, and data terminals like those maintained by Bloomberg and Reuters.
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Source Fool.com
