SHARETIPSINFO >> Articles Directory >>Why to buy recession proof companies stocks

 

Since the last years investors all over the world are having a tough time at the stock market. The economic recession that is marked as the worst blow to global economy since the Great depression of 1930. The heat of the recession is also felt at the Indian markets as well. Investors are clueless about when this trend is going to and when exactly the market will recover to its normal growth. Unfortunately there is no ready answer to this million dollar question. Hence the best thing to do at this juncture of time is to trade in the recession proof stocks.

If you are thinking that is there any such stock that is not affected by this global recession, you probably are thinking in the right way. There is hardly any stock that is not hit by the universal downtrend at the stock market. The difference is that there are stocks that are grossly affected by the recession and there are some stocks that are least affected. Your objective would be to find those stocks that are least affected by the recession and these are the stocks that can be termed as the recession proof stocks. Finding and investing in these stocks will ensure that your investment is protected against the downturn of the stock market even in the time of recession.

There are certain industries and some specific stocks that are hardly affected by the recession, for example the utility stocks. Companies that deal in products that we can not live without are hardly affected by the recession. As these are the products that are in demand irrespective of the economic scenario of the country. Stocks of power sector, FMCG sector, energy sector, natural gas and there are so many sectors that are doing brisk business even during the recession. To find the recession proof stocks and to secure your investment by buying these stocks you have to look at these sectors.

Apart from investing in the recession proof stocks you can also look for long term investments at the fundamentally strong companies at the stock market. You need to pick up stocks of those companies that have history of making good profit and offering dividends to the stock holders. You can also choose to invest in the large cap stocks of good companies that are leaders in the respective industries. In short any company that is fundamentally strong and has good future is somewhat recession proof and safe for investment.

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