Is a recession coming in 2023? On Wednesday, the Federal Reserve raised US interest rates by 0.75% for the third straight time, and signalled that rates would keep rising in the coming months even at the risk of economic pain. Across the world, central banks have also been raising rates to tackle soaring inflation. These rate hikes could potentially trigger a global recession next year, according to the World Bank.
With many investors already feeling the pinch from rising prices, what can you do to prepare for the possibility of a recession?
One way is to review your portfolio so you can assess how to fine-tune it before a recession strikes. No investment is 100% immune to an economic downturn, but there are some that are traditionally considered “recession-proof”, or seen as natural inflation hedges.
Recession-proof stocks to consider
Stocks of companies that provide essential goods or services have historically held up better in an economic downturn. These include:...