Choosing specific investments can be difficult. The stocks that have worked in the recent past don’t seem to be performing well now. While there may be no truly recession proof stocks, there are some sectors that are known to perform better than others in inflationary environments.
“During times of inflation, utility stocks become a great investment option,” suggests Riggs Eckelberry, Founder and CEO at OriginClear, an idea lab for water innovation projects. “They are relatively low risk and remain steady regardless of the current economy or market cycle, making them desirable for any well-diversified portfolio.
When picking dividend-yielding utilities investors should look for royalty income or profit-sharing. It is key to remember that utilities outpace inflation, but dividends do not.”
[...]