Should you invest in a recession?

In theory, that's bad news for an existing portfolio, yet leaving investments alone means not locking in recession-related losses by selling. What's more, lower stock values offer a solid opportunity to invest on the cheap (relatively speaking). As such, investing during a recession can be a good idea but only under the following circumstances:

How will a recession affect the stock market?

Not all assets are impacted the same way by a recession. As spending shifts to basics, consumer staples, utilities, and other defensive stocks may fare better. Companies with strong balance sheets will also be able to weather a temporary decline in profits more than a high-spending growth stock.

Do some industries perform well during a recession?

While it might seem surprising, some industries perform quite well during recessions. Investors looking for an investment strategy during market downturns often add stocks from some of these recession-resistant industries to their portfolios.

Should you invest in core sector stocks during a recession?

There are a few industries to consider when searching for the best core sector stock to add to your portfolio if you want to invest during a recession. Typically, a recession means households have to cut back on their spending. That said, certain parts of a budget are unavoidable.