As 2024 recession forecasts loom, safeguarding your investments is more important than ever. While pinpointing recession-proof stocks can be hard to do, certain industries tend to be more resilient during economic downturns. Callie Cox, U.S. Investment Analyst, eToro, joined TheStreet to discuss the advantage of holding investments in big tech during a recession.
Full Video Transcript Below:
J.D. DURKIN: I would like to talk about recession proof stocks. I know that's such a difficult conversation overall, but I wonder, are there either recession proof stocks, not necessarily that you like because I know what you do for eToro, but are there kind of recession proof names you hear frequently cited over and over again, especially in the spirit of consumer staples or some of those immediate go to's that people might gravitate towards in tightening economic conditions?
CALLIE COX: Well, I'm going to surprise you, J.D. I actually think big tech fits this mold quite well. If you look at big tech, they are some of the strongest, most financially durable companies on the market. And that's why I'm not surprised that we've seen investors gravitate toward them since, especially since March when we had the bank implosions and people got really worried about the economy.
To be clear, there's no one big group of recession proof stocks. If anybody tells you they know what companies will survive a recession, they're probably lying to you or making an educated guess. But if you want to look at profit margins, you know, hoards of cash, if you want to look at competitive advantages, big tech is the group that stands out in my mind.
