Only time will tell if we are heading into a recession as the central bank’s aggressive rate hikes start to slow the economy and potentially tip the U.S. into a recession. In the last four meetings of the central bank, they’ve raised their benchmark rate by 0.75 percentage points each time. These hikes, combined with earlier ones this year, mean the fed funds rate has gone from near zero to roughly 3.75% to 4.00%.
Some of the stocks that could be recession-proof in our opinion include Alphabet (NASDAQ: GOOGL), BMW (OTCMKTS: BMWYY), Cigna (NYSE: CI), and JD Sports Fashion. Discount retailers are also key beneficiaries of the potential recession and ongoing inflation, which will see consumers continue to trade down. These include Dollar General Corp (NYSE: DG), Target (NYSE: TGT), Big Lots (NYSE: BIG), Dollar Tree (NASDAQ: DLTR), MINISO Group Holding (NYSE: MNSO), and Franchise Group (NASDAQ: FRG).