Amazon founder and executive chairman Jeff Bezos is sounding the alarm.
In an interview with CNN, Bezos says that the economy “does not look good right now.”
“Things are slowing down. You’re seeing layoffs in many many sectors of the economy.”
And that means you might want to tighten up your budget.
“If you’re an individual considering purchasing a big-screen TV, you might want to wait, hold onto your money, and see what transpires,” the billionaire recommends. “The same is true with a new automobile, refrigerator, or whatever else. Just remove some risk from the equation.”
That’s not a good sign for investors.
But not all businesses are created equal. Some — like the three listed below — might be able to perform well even if the economy falls into a recession.
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The sector isn’t a fascinating one, but it is recession-resistant: No matter what happens to the economy, people will still need to heat their homes in the winter and turn the lights on at night.
High barriers to entry protect the profits of existing utility companies. Building the infrastructure needed to deliver gas, water, or electricity is quite expensive, and the industry is highly regulated by the government.
Thanks to the recurring nature of business, the sector is also known for paying reliable dividends.
If you are looking for the best utility stocks, names in the Utilities Select Sector SPDR Fund (XLU) provide a good starting point for further research.
Healthcare Healthcare serves as a classic example of a defensive sector thanks to its lack of correlation with the ups and downs of the economy.
At the same time, the sector offers plenty of long-term growth potential due to favorable demographic tailwinds — particularly an aging population — and plenty of innovation.
Average investors might find it difficult to pick out specific healthcare stocks. But healthcare ETFs can provide both a diversified and profitable way to gain exposure to the space.
Vanguard Health Care ETF (VHT) gives investors broad exposure to the healthcare sector.
To tap into specific segments within healthcare, investors can look into names like iShares Biotechnology ETF (IBB) and iShares U.S. Medical Devices ETF (IHI).
Those looking to take control of their investments should certainly explore online trading platforms. The best sites offer resources and tools to help investors make informed decisions as they build and manage their investment portfolios.
Real estate It may seem counterintuitive to have real estate on this list.
While it’s true that mortgage rates have been on the rise, the real estate industry in Canada has a long-term positive outlook, according to a recent report by PwC.
“Many of the fundamental underpinnings of the Canadian property market remain strong,” PwC says in their Emerging Trends in Real Estate 2023 report, “Especially given the impacts of trends like rising immigration levels on demand for real estate assets relative to continuing supply problems.”
Well-chosen properties can provide more than just price appreciation. Investors also get to earn a steady stream of rental income.
But you don’t need to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can get you started on becoming a real estate mogul.