The economy can be hard on your portfolio. This has happened before and it could happen again. Now that we’re officially in a recession, what better time to pump up your resources and shore up your portfolio than to make it recession-proof now or at least weather the tough economic times? Here are some anti-recession tips you might want to consider:
Aim for quality.
If there’s one thing that markets abhor, it’s uncertainty. This is especially prevalent in the way investors behave when faced with companies that produce predictable figures. This is also the reason why investors are loathed to take chances on companies that don’t perform as expected. These companies are usually the small ones, ones that need investors’ faith the most.
To start shoring up your portfolio, try to avoid companies that will rely heavily on you, the investor. It will be easier for you (and safer for your investment) to rely on companies that more or less show predictable growth because this points to better earning quality. Opt for these companies instead – these are usually large firms, big players in an industry that have proven staying power regardless of the economy and have plenty of money to continue to run, do business, pay debtors, produce and make their investors happy.
Invest in health care.
Take your pick: drugs, medicines and pharmaceuticals or health services. Whichever way you go, you have a better means of shoring up your portfolio if you put your faith on this sector that continues to enjoy a healthy performance.
And it shouldn’t surprise you one bit: what the health care industry can offer is a staple among consumers – good health and a means to cure. Unless someone comes up with a miracle cure soon, the health care industry will continue to thrive. Until then, this is one more segment of the market that you might consider putting your faith on.
And yes… the fact that certain segments such as pharmaceuticals pay a lot in terms of…