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?

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center