Investing

How should I invest to protect myself against a recession?


Mar 25, 2008 - 10:27:28 PM

How should I invest to protect myself against a recession?

What you don’t want is a portfolio that’s too strong in any one direction. If you’re heavy in tech stocks, for example (an understandable predilection considering their run-up in 2007), consider cutting back and adding some financials, which tanked last year but will likely bounce back this year. Also be sure to invest in sectors that have performed well in poor economic times: health care, pharma­ceuticals, agriculture, and anything you see on grocery-store shelves. Foodstuff stocks aren’t as sexy as the biotech variety, but people always need toothpaste.  

Bill Strand is a wealth manager with Asset Strategy Consultants in Maple Grove, Minnesota.

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