Recession Resistant

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.

BREAKING DOWN '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.

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