Jeff Bezos Just Issued A Financial Warning, Says You Might Want To Rethink Buying ‘A New Car, Refrigerator, Or Something Else’ – 3 Better Recession-Proof Purchases

'Keep Your Money': Jeff Bezos Just Issued A Financial Warning, Says You Might Want To Rethink Buying 'A New Car, Refrigerator, Or Something Else' - 3 Better Recession-Proof Purchases

‘Keep Your Money’: Jeff Bezos Just Issued A Financial Warning, Says You Might Want To Rethink Buying ‘A New Car, Refrigerator, Or Something Else’ – 3 Better Recession-Proof Purchases

Jeff Bezos, founder and CEO of Amazon, is sounding the alarm.

In an interview with CNN, Bezos said the economy “doesn’t look good right now.”

“Things are slowing down. You’re seeing layoffs in many sectors of the economy.”

This means that you may want to tighten your budget.

“If you’re an individual considering buying a big screen TV, you might want to wait, hold your money and see what happens,” the billionaire recommends. “The same goes for new cars, or a refrigerator, or whatever. You just need to remove some of the risk from the equation.”

This is not a good sign for investors.

But not all businesses are created equal. Some – like the three listed below – may be able to do well even if the economy falls into a recession.

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services

The utility sector consists of companies that provide electricity, water, natural gas, and other essential services to homes and businesses.

It’s not a great sector, but it’s recession-proof: No matter what happens to the economy, people will still need to heat their homes in the winter and turn the lights on at night.

High barriers to entry protect the profits of incumbents. It is very expensive to build the infrastructure needed to deliver gas, water or electricity, and the industry is highly regulated by the government.

Thanks to the recurring nature of the business, the sector is also known for paying reliable dividends.

If you’re looking for the best utility stocks, the names on Utilities Select Sector SPDR Fund (XLU) provide a good starting point for further research.

Health Care

Healthcare is a classic example of a defensive sector thanks to its lack of correlation with the vagaries of the economy.

At the same time, the sector offers a lot of long-term growth potential given favorable demographic tailwinds – particularly an aging population – and plenty of innovation.

Ordinary investors may find it difficult to pick certain healthcare stocks. But healthcare ETFs can provide a diversified and profitable way to gain exposure to the space.

Read more: Trade While the Market Stumbles: Here are the best investing apps to pounce on ‘once in a generation’ opportunities (even if you’re a beginner)

The Vanguard Health Care ETF (VHT) gives investors ample opportunity for the healthcare sector.

To take advantage of specific healthcare sectors, investors can look into names like iShares Biotechnology ETF (IBB) and iShares US Medical Devices ETF (IHI).

Real estate

It may seem counterintuitive to have properties on this list.

While it is true that mortgage rates are on the rise, real estate has already proven its resilience in times of rising interest rates according to investment management firm Invesco.

“Between 1978 and 2021, there were 10 distinct years in which the federal funds rate went up,” Invesco says. “During these specific 10 years, private real estate in the United States has outperformed stocks and bonds seven times, and public real estate in the United States has outperformed six times.”

Well-chosen properties can provide more than just a price estimate. Investors also get a steady stream of rental income.

But you don’t need to be an owner to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can help you get started Become a real estate mogul.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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