Jeff Bezos just issued a financial warning, says you might want to rethink buying a ‘new automobile, refrigerator, or whatever’ — 3 better recession-proof buys

'Hold on to your money': Jeff Bezos just issued a financial warning, saying you might want to rethink buying a 'new automobile, refrigerator or whatever' - 3 good recession-proof buys

‘Hold on to your money’: Jeff Bezos just issued a financial warning, saying you might want to rethink buying a ‘new automobile, refrigerator or whatever’ – 3 good recession-proof buys

Amazon founder and executive chairman Jeff Bezos sounded the alarm.

In an interview with CNN, Bezos said the economy is “not looking good right now.”

“Things are slowing down. You see layoffs in many sectors of the economy.”

And that means you might want to tighten your budget.

“If you’re an individual considering buying a big-screen TV, you might want to wait, hold onto your money and see what happens,” the billionaire recommends. “The same is true for a new automobile, refrigerator, or anything else. Just remove some 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 perform well even when the economy is in recession.

don’t miss out

utilities

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

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The sector is unattractive, but it is recession-proof: no matter what happens to the economy, people still need to heat their homes in the winter and keep the lights on at night.

High barriers to entry protect the profits of existing utility companies. Building the infrastructure needed to supply gas, water or electricity is quite expensive and the industry is highly regulated by the government.

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

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

Healthcare

Healthcare serves as a great example of a defensive sector due to its lack of correlation with the ups and downs of the economy.

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

The average investor can find it difficult to pick specific healthcare stocks. But healthcare ETFs can provide both a diversified and profitable way to gain exposure to the space.

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The Vanguard Healthcare ETF (VHT) gives investors broad exposure to the healthcare sector.

To tap into specific sectors within healthcare, investors can look to names like the iShares Biotechnology ETF (IBB) and the iShares US Medical Devices ETF (IHI).

housing

It may seem counterintuitive to have real estate on this list.

While it’s true that mortgage rates are rising, real estate has actually demonstrated its resilience in times of rising interest rates, according to investment management company Invesco.

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“Between 1978 and 2021, there were 10 distinct years in which the federal funds rate rose,” says Invesco. “Over these 10 marked years, US private real estate outperformed equities and bonds seven times and US public real estate six times.”

Well-chosen features can provide more than just value appreciation. Investors can also earn a steady stream of rental income.

But you don’t have to be a landlord to start investing in real estate. There are plenty of real estate investment trusts (REITs) as well as crowdfunding platforms that can get you started as 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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