Long-Term Investing

Recession-Proof Portfolio

I’m late to the party with my recession talk, because if you believe the news “there’s no recession” and we’re back in the bull market:

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But, here it goes anyway. A typical recession-proof portfolio consists of:

  • large-cap companies with stable growth and solid dividend
    ha, banks were supposed to be like that
  • consumer staples stocks (food, alcohol, tobacco, household and personal care essentials)
    frankly, alcohol is so expensive in Canada, in case of a recession it would be the first to go for us
  • healthcare
    this should be in the above category among “consumer staples”, because that’s what Valium and Viagra are by now; but seriously, Healthcare REITs might be a smart move
  • bank deposits (cash)
    not too much, if inflation is running high and interest rates are low
  • foreign investments
    you’d have to rely on analyst opinions with these, and that’s just not a good strategy; however I don’t mind Switzerland and their money