Recession Resistant

AAA

DEFINITION of 'Recession Resistant'

An entity which is not greatly affected by a recession. Recession resistance can apply to stocks, companies, businesses, jobs and even entire industries that will be needed during all economic states. For example, an item such as bread may be considered recession resistant, as people will continue to buy bread regardless of a recession.

INVESTOPEDIA EXPLAINS 'Recession Resistant'

During times of recession, portfolio diversification plays an even larger role than normal. It is wise for investors, even in times of plenty, to have a wide variety of investments included in their portfolio to insure them no matter which way the economy turns. Types of stock that will provide insurance during a recession are called recession-resistant stocks.

RELATED TERMS
  1. Double-Dip Recession

    When gross domestic product (GDP) growth slides back to negative ...
  2. Slump

    A slang term denoting a period of poor performance or inactivity ...
  3. Economic Cycle

    The natural fluctuation of the economy between periods of expansion ...
  4. Stock Cycle

    The evolution of a stock's price from an early uptrend to a price ...
  5. Panic Selling

    Wide-scale selling of an investment, causing a sharp decline ...
  6. Recession

    A significant decline in activity across the economy, lasting ...
Related Articles
  1. Industries That Thrive On Recession
    Economics

    Industries That Thrive On Recession

  2. The Ups And Downs Of Investing In Cyclical ...
    Investing

    The Ups And Downs Of Investing In Cyclical ...

  3. 5 Things You Shouldn't Do During A Recession
    Budgeting

    5 Things You Shouldn't Do During A Recession

  4. Where's The Market Headed Now?
    Fundamental Analysis

    Where's The Market Headed Now?

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center