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5 Industries that Benefit Stock Traders No Matter What

2 July 2020 No Comment

Stock prices rise and fall based on a multitude of external factors. While independent catalysts like the release of a new product might increase a single company’s stock value, market-wide factors like widespread job loss can affect many companies. Volatility is part of the stock market, for better or for worse. However, investors can make choices about the types of companies and types of stocks in which they invest, which can help cushion some of the pain of a market downswing.

If you’re looking to invest in stocks that should perform admirably regardless of stock market volatility, consider a company in one of these 5 industries.

Stable Stock Industries to Invest In

When the entire stock market loses money and value, it can lead to a recession or depression. During these times of economic turmoil, some industries continue to hold their value and don’t suffer the losses that other industries tend to see. If you’re looking for investments on the lower-risk end of the spectrum, consider companies from┬áthese sectors:

Consumer Durables

Consumer durables are those products that people need rather than want, like household supplies and food. Since they’re considered staples, companies in this sector tend to perform well regardless of the economy. Investing in companies that produce consumer durables is a fairly recession-proof strategy.

Health Care

Regardless of whether the economy is strong or weak, people need to go to the doctor. Because of this, most health care companies are unaffected by changes to the overall stock market, making health care a relatively low-risk choice for investment despite any economic turmoil.

Utilities and Telecommunications

Utilities and telecommunications encompass companies like energy providers and phone companies. These, like consumer durables, are necessities even in times of economic strife, making them a smart investment choice for those looking to avoid hits to their portfolio during a recession.


The industrial sector is expansive and includes a variety of subsectors and companies that represent industry and development, from automotive to computers. If you’re looking for a specific company or fund within the industrial sector that should perform well even during a recession, select ones that make something vital, like hospital equipment or airplane parts, regardless of the economy’s health.

Information Technology

Information Technology is a broad industry encompassing a variety of companies, like computer manufacturers, cloud computing companies, and app developers. Due to the necessity of technology in many other sectors, much like health care, the demand is always high for technological development.

Dividend Stocks

While some stocks simply change in value over time, others provide stock traders with quarterly or monthly payouts, called dividends, in addition to the stock value. When selecting industries that benefit stock traders, consider those specific companies that provide dividends. This way, you’ll receive regular income even if the market trends downward.

Understanding how the stock market works and the risks and rewards involved is vital when investing. If you’re worried about risk, select stocks within industries that tend to perform well regardless of the state of the economy overall.

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