Amazon founder and CEO Jeff Bezos is sounding the alarm.
In an interview with CNN, Bezos says the economy “doesn’t look good right now.”
“Things are slowing down. You are seeing job losses in many sectors of the economy. “
And that means you might want to tighten your budget.
“If you are someone who is thinking of buying a big screen TV, you might want to wait, save your money, and see what happens,” the billionaire says. The same is true for a new car, refrigerator, or anything else. Just take some risk out of the equation. “
This is not a good sign for investors.
But not all businesses are created equal. Some – like the three mentioned below – can thrive even when the economy is down.
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The utility sector is made up of companies that provide electricity, water, gas and other essential services to homes and businesses.
This part is not fun, but it does deal with the recession: No matter what happens to the economy, people will still need to heat their homes in the winter and keep the lights on at night.
High barriers to entry protect the profits of existing firms. Building the infrastructure needed to supply gas, water, or electricity is very expensive, and the business is controlled by the government.
Due to the repetitive nature of the business, this sector is also known for providing reliable payments.
If you’re looking for the best stocks, the names in the Utilities Select Sector SPDR Fund (XLU) provide a good starting point for further research.
Health care
Healthcare is a good example of a safe sector because it is not linked to the ups and downs of the economy.
At the same time, the sector offers long-term growth opportunities thanks to the good mobility of people – especially the elderly – and the many arts.
Many investors may have difficulty choosing certain healthcare stocks. But health ETFs can provide a different and more profitable way to invest in real estate.
Read more: Business when the market is down: Here are the best investment programs for ‘once-in-a-generation’ opportunities (even if you’re a beginner)
Vanguard Health Care ETF (VHT) focuses on the health care industry.
For access to other medical sectors, investors can look to names such as the iShares Biotechnology ETF (IBB) and the iShares US Medical Devices ETF (IHI).
Real estate
It may seem counterintuitive to have a real place on this list.
While it’s true that mortgage interest rates are on the rise, the real estate industry has certainly shown its resilience in times of rising interest rates according to investment management firm Invesco.
“Between 1978 and 2021, there were 10 separate years in which the Federal Funds rate went up,” says Invesco. “Over the 10-year period, U.S. real estate has outperformed bonds by seven times and U.S. real estate has outperformed bonds by six times.”
A well-chosen property can offer more than just value. Investors also get to borrow money.
But you don’t have to be a homeowner to start selling real estate. There are many real estate trusts (REITs) and investment platforms that can get you started as a real estate mogul.
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This article provides information only and should not be considered as advice. It is offered without warranty of any kind.
