Anti-Recession Tips to Shoring Up Your Portfolio

Let face it, if the economy is down, it also means it can be hard on your portfolio. Economic slowdown had happened before and it could happen again. Some government officials claimed that we are starting to bounce back from recession as the chart showed, but it's far from the truth. However, some investors instead of panicking saw the recession as an opportunity to pump up your resources and shore up your portfolio to make it anti-recession and weather the economic slowdown.

Below are are some tips to shore up your portfolio during a recession;

Aim for Quality.
Unpredictability, that's one thing that markets abhor. This is predominant especially in the way most investors behave when faced with companies that produce predictable figures. This is also the reason why investors are staying away from companies that don't perform as expected. Smaller companies are always fall in this category.

And to start shoring up your portfolio, invest on companies that shows predictable growth because this points to better earning quality. These usually large companies, big players in an industry and have proven staying power regardless of any economic situation and have plenty of money to run and continue their operations. And try to avoid companies that heavily rely on investors.

Invest in Health Care.
Invest wisely. You have a better means of shoring up your portfolio and continue to enjoy a healthy performance if you trust and consider putting your faith on the services below.
- Drugs
- Medicines
- Pharmaceuticals
- Health Services

Health care industry consider as a recession-proof industry, and also not to mentioned that pharmaceuticals and health services are mostly pays huge dividends.

Stick Where the Crowds are.
Stick where the crowds are. Crowds are consumers, and consumers are the lifeblood not only on every business but also on economies. Without their support and buying power, economies are going down. And if you are an investor and looking to shore up your portfolio, try to invest where consumers bloom. This means putting your money on industries that cater the consumers basic needs, such as;
- Food and Beverages
- Personal Care
- Household Needs

Consumers have been proven to continue spending on basic needs even during economic slowdown or recession.

Diversify.
If you want to shore up your portfolio and avoid the negative effects of a recession, consider diversifying. But before you consider to diversify, study carefully the pros and cons of the industries that you wish to invest in. Focus on industries and firms that behaved so well even under pressure, especially those anti-recession industries, which continue to grow even during an economic recession.