Recession-Proof Stock #4: Potash (POT)
In a recession, most professionals suggest that investors take a defensive posture. That theory states that buying stocks with
great balance sheets and stable cash flow is a way to withstand the downdraft of a bear market. If you own stocks of things that
consumers have to buy, you can expect to beat the market performance-wise.
Again this bear market has been different in many ways. Even the most defensive stocks are losing value in a big way. None of
it makes sense.
One sector that should be insulated during a recession is the food space. We have to buy food, right? Specifically, I want to
own stocks of companies that are leveraged to the agriculture space. That means fertilizer, and names like Potash (POT).
As hedge funds were forced to liquidate, shares of POT dropped at a time when they should have done well relative to the rest
of the market. The selling creates an opportunity for investors looking for recession-proof stocks.
Buy Potash, and let others worry about the recession.
Potash is one of five stocks set to thrive for the long term. Get
the complete list here.
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