No one has officially announced a recession just yet, but a lot of us can feel the purse strings of America tightening a little bit.
Financial experts say that it usually takes six months to determine a recession has actually occurred. But according to 45 different economists, the U.S. is indeed in the midst of a recession. The National Association for Business Economics expects economic growth fell 2.4% in Q1, and will drop 26.5% in Q2. That coupled with the staggering number of 30 Million Americans who’ve filed for unemployment, it definitely feels that way.
But throughout history, there have been people who always seem to make money during times of despair. So how do you get in on that? Get in on the stocks they invest in as well.
Local economists agree that during times of recession the rich hold on to as many cash cows as they can and don’t go out splurging or spending all of their stimulus check (hint, hint). For example, many cite the reason why luxury stores are also suffering during this time—the rich hold on to their money in order to be cash-heavy coming out of the recession then they can buy a lot more when prices are low.
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With that said, here are some of the stocks many recommend (U.S. News, Forbes, Fortune, etc) buying to build up your portfolio and not just survive during a recession or pandemic, but thrive.
1. Zoom Video Communications (ZM):
More companies, health care groups, and governments are using remote meeting tools to enable their staff to meet and collaborate via web-based software, and Zoom has been the go-to resource for that. Over the last few months, Zoom stock has increased from $67 to $157 per share.
2. Hershey (HSY)
While Hershey (HSY, $142.60) might not be able to fully avoid taking a hit in a recession, it did a pretty good job in 2008. That year, Hershey reported sales of $5.13 billion, 3.8% higher than in 2007. Hershey produced a $311 million profit out of that, or 45.3% higher than a year earlier.
