Is the Worst Over? 3 Recession-Proof Stocks to Shield Your Portfolio.

Market Overview - The market is currently experiencing a correction, downturn, and potential recession, with high volatility and a broad market sell-off observed over the past month [1] - Despite some signs of a rebound, investor fears of a market crash remain prevalent, prompting a shift towards safer stocks [1][2] Industry Insights - No industry is completely recession-proof, but certain sectors like consumer staples and discount retailers tend to perform better during economic downturns [2] - Measures of market fear suggest a shift in investment strategy is warranted, with a focus on assets that can act as buffers against economic woes [2] Company Analysis: Dollar General (DG) - Dollar General's stock is expected to rise following a Q2 revenue of $9.91 billion, slightly exceeding expectations, driven by strong customer traffic [4] - The company faced a 26.3% decline in operating profits due to significant shrinkage, leading to the closure of 12,000 self-checkout kiosks [5] - The shift towards hiring more staff is anticipated to improve operational profits, making Dollar General attractive to investors during market corrections [6] Company Analysis: Anheuser-Busch InBev (BUD) - Anheuser-Busch InBev is considered a strong portfolio buffer, as alcohol stocks generally perform well during recessions due to increased consumption [7] - The company experienced sales growth in Q2, although volumes declined; price increases compensated for this, and lower-priced beer volumes are expected to rise if the economy worsens [9][8] Company Analysis: Procter & Gamble (PG) - Procter & Gamble is a recommended stock during economic turmoil, known for its resilience due to inelastic demand for consumer staples [10] - The company is projected to see an earnings rebound in 2024, with steady annual growth of approximately 6% expected thereafter [11] - Organic sales grew by 4% in the latest fiscal year, marking the sixth consecutive year of growth, reinforcing the strength of its product portfolio [12]