Commentary
Fears of a recession have been front of mind recently for many investors, with some thinking we’re already in one.
Unfortunately, official confirmation of a recession often arrives long after the recession has ended. Prudent investors have been, or should already be, reevaluating their holdings to remove those investments that won’t do well and add others that will perform well during a recession.
Proactive advisers should be telling their clients to buy defensive ETFs in sectors that have historically outperformed the rest of the market during recessions because even during economic slowdowns some industries survive or even thrive. These are commonly industries where demand is inelastic to changes in prices and incomes and where consumer demand is relatively stable….