Worried About a Recession? Fee Income Could Be Your Port in the Storm
As the Federal Reserve continues to raise interest rates, investors are beginning to worry about a potential recession. During a recession, consumers cut back on spending, workers get laid off, businesses fail, and credit losses mount. This is usually a difficult time to be invested in bank stocks.
That said, many banks have different business models and some are more resilient to economic shocks than others. If we are heading into a recession, investors interested in bank stocks should take a look at Bank of New York Mellon (NYSE: BK), which earns most of its money from fee income.
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Source Fool.com
