In an attempt to put a lid on inflation, the Federal Reserve has stated that it intends to raise its benchmark federal-funds rate by 0.25% at least six more times this year after already raising rates once. The Fed could also decide to move rates 0.50% if it deems necessary to combat inflation, which has some investors thinking about recession-proof stocks. Add to this the unknown impact of the Russian invasion of Ukraine and there is a lot of risk in markets. While we believe investors should be aware of potential headwinds, this doesn’t imply that we are suggesting they should head for the exits. Instead, we encourage long-term investors to seek out recession-proof stocks in order to protect their portfolio.
We also believe that a special emphasis should be placed on owning those companies with long track records of dividend growth as the income they provide can cover costs in retirement, be used to purchase new shares at what could be lower prices, and help to offset any weakness in the share price. Three of our favorite recession-proof stocks include: ABM Industries (NYSE:ABM), Bristol-Myers Squibb (NYSE:BMY) and UGI (NYSE:UGI).
Source: NASDAQ
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