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Traditionally, investing in necessities that people keep buying even during a recession have held up well in a recession - not necessarily made a big profit but held their own. So consumers non-cyclical (P&G, Budweiser, Coca Cola) and utilities are considered a good safe haven. There are ETF's built on these sectors, too. Check out etfconnect.com.

Gold is a generally a good hedge against a failing economy and upheaveal (war, terrorism, falling $, high unemployment), but it's really high right now, so be careful.

Treasury bonds is another place where $ flows, but 30-years are at around 4.7% yield now. However, if we do enter a recession, the yield will probably fall some more due to demand and so if you bought now, the price will go higher.

Online savings rates are still very decent @ 5% - and, because of the internet, I believe those rates will hold up even if the Fed starts cutting interest rates, which they will if a recession looms or we enter one.

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16y ago
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15y ago

Invest in recession-proof industries. Regardless of the financial climate, people always get sick, people always commit crimes, garbage has to be picked up and processed, people have to eat, people have to get to work, hair has to be cut, etc. And entertainment tends to boom during recessions as people always seek their escape be it drinks, movies, games, or what-have-you.

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Q: What is a good investment strategy when a recession is coming?
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