Riding Out a Potential Recession: Two Stocks to Consider
The stock market can be a rollercoaster ride, and lately, it seems we’ve hit a steep drop. After the president’s tariff announcement sent shockwaves through Wall Street, many financial experts have been sounding the recession alarm. But fear not, dear reader! In this blog post, we’ll channel our inner optimists and discuss two stocks longtime Fool.com contributors, Matt Frankel and Tyler Crowe, believe are worth considering, even in the face of an imminent economic downturn.
Stock Pick #1: Alphabet Inc. (GOOGL)
Matt Frankel: I know what you’re thinking: “Google? In a recession?” But hear me out. Alphabet, Google’s parent company, is a bit of a powerhouse. They’ve got their fingers in a lot of pies – search, YouTube, Google Cloud, and Google Play, to name a few. And during economic downturns, people tend to spend more time online. That’s where Alphabet comes in.
Matt: Now, I’m not saying Alphabet is recession-proof. But they’ve shown resilience in the past. During the 2008 financial crisis, their stock dropped significantly but quickly rebounded. And since then, they’ve continued to grow, year after year.
Stock Pick #2: Costco Wholesale Corporation (COST)
Tyler Crowe: Costco might not be the most glamorous stock out there, but it’s a solid one. When people are worried about their wallets, they tend to seek out bargains. And that’s exactly what Costco offers. They’ve got low prices, a wide selection, and a loyal customer base. Plus, they’ve got a membership model that generates recurring revenue. That’s always a good thing, recession or not.
Tyler: Now, I’m not saying Costco is recession-proof either. But they’ve shown they can weather economic storms. For example, during the 2008 recession, their sales actually increased. And they’ve continued to grow since then.
How a Potential Recession Might Affect You
So, what does all this mean for you? Well, if you’re an investor, it might mean it’s time to reevaluate your portfolio. If you’re worried about a recession, you might want to consider adding some defensive stocks, like Alphabet and Costco, to help cushion the blow. And if you’re not an investor yet, now might be a good time to start.
How a Potential Recession Might Affect the World
But it’s not just investors who might be affected by a potential recession. Economically, it could mean higher unemployment rates, lower consumer spending, and decreased business investments. Politically, it could lead to increased government spending and potentially, more regulations. And socially, it could lead to increased stress and anxiety for individuals and families.
Conclusion
So there you have it, folks! Two stocks to consider, even in the face of a potential recession. Now, I’m not saying these stocks are guarantees. But they’ve shown resilience in the past and might be worth considering as part of a diversified portfolio. And remember, no matter what the economy does, there’s always something new to learn and invest in. So keep calm, carry on, and happy investing!
- Alphabet Inc. (GOOGL): A powerhouse with a wide range of offerings
- Costco Wholesale Corporation (COST): A solid choice with a loyal customer base
- Defensive stocks: A good addition to a portfolio during economic downturns
- Diversified portfolio: Key to weathering economic storms
