Jeff Bezos Just Issued a Financial Warning, Says You May Want to Rethink Buying a ‘New Car, Refrigerator, or Whatever’ — 3 Better Recession-Proof Buys


'Hold on to your money': Jeff Bezos just issued a financial warning, says you might want to rethink buying a 'new car, fridge or whatever' — 3 better recession-proof buys

‘Hold on to your money’: Jeff Bezos just issued a financial warning, says you might want to rethink buying a ‘new car, fridge or whatever’ — 3 better recession-proof buys

Amazon founder and executive chairman Jeff Bezos is sounding the alarm.

In an interview with CNN, Bezos says the economy “doesn’t look good right now.”

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

And that means you might want to cut back on 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 advises. “The same goes for a new car, a refrigerator, or anything else. Just take some risk out of 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 if the economy goes into recession.

Do not miss

Utilities

The utilities sector consists of companies that deliver electricity, water, natural gas, and other basic services to homes and businesses.

The sector isn’t glamorous, but it’s recession-proof: no matter what happens to the economy, people will still need to heat their homes in the winter and turn on the lights at night.

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

Due to the recurring nature of the business, the sector is also known for paying reliable dividends.

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

Healthcare

Healthcare serves as a classic example of a defensive sector, thanks to its lack of correlation with the ups and downs of the economy.

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

Average investors may struggle to pick specific healthcare stocks. But healthcare ETFs can provide both a diversified and profitable way to gain exposure to the space.

Read more: Trade up while the market falls: Here are the best investing apps to take advantage of once-in-a-generation opportunities (even if you’re a beginner)

The Vanguard Health Care ETF (VHT) provides investors with broad exposure to the healthcare sector.

For exposure to specific healthcare segments, investors can look to names like the iShares Biotechnology ETF (IBB) and the iShares US Medical Devices ETF (IHI).

Property

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.

“Between 1978 and 2021, there were 10 separate years in which the federal funds rate increased,” Invesco said. “Over these 10 identified years, US private real estate has outperformed stocks and bonds by seven times, and US public real estate has outperformed six times.”

Well-chosen properties can provide more than just price appreciation. Investors also receive a steady stream of rental income.

But you don’t have to be a landlord to start investing in real estate. There are many real estate investment trusts (REITs) as well as crowdfunding platforms that can help you become a real estate mogul.

What to read next

  • Over 65% of Americans Are Not Looking for a Better Car Insurance Deal – And It Could Be Costing You $500 a Month

  • Your Money Is Garbage: Here Are 4 Easy Ways To Protect Your Money From White-Hot Inflation (Without Being A Stock Market Genius)

  • Chances are good you’re overpaying for home insurance. Here’s how to spend less for peace of mind

This article provides information only and should not be construed as advice. Provided without any warranty.

Share is Love^^