Brief

Consumer staples, utilities, healthcare. Things people buy regardless of the economy.

People still brush their teeth, take their medications, and buy groceries in a recession. P&G, J&J, Walmart, UnitedHealth, and Coca-Cola have pricing power and inelastic demand. These stocks underperform in bull markets but hold up dramatically better in downturns. The 2008 crisis saw staples decline ~15% vs the S&P's ~55%. This is the sleep-at-night portfolio for people who think a recession is coming.