10 Worst Stocks To Buy During A Recession

Zinger Key Points
  • A recession is well-known as a normal aspect of the economic cycle.
  • Industrials and real estate are among the sectors that investors should avoid during a recession.

Investor fears are mounting — inflation is at a 40-year-high, the U.S. is teetering on recession, and the S&P 500 officially entered a bear market as it has fallen more than 20% from its previous all-time high.

More than that – after May’s CPI numbers were released, based on the prices of short-term credit futures, CME's FedWatch technology predicts a 30% chance of a 75-basis-point rate hike at this month's FOMC. A raise of 75 basis points would be the largest since 1994.

Investors are left to ask themselves, should I sell my stocks?

An investor could sell their stocks and hold out until signs of the next bull market arise, or they can seek to understand what happens with stocks during a bear market or a recession and prepare themselves for what may be ahead.

Also Read: 5 Critics Of Vladimir Putin Who Died In Dubious Ways

A recession is well-known as a normal aspect of the economic cycle. Simply put, the cycle occurs when the economy transitions from a boom phase to a recession and then back to growth. Because it directly affects stock prices in relation to business profitability, this is undoubtedly the most powerful impact on the broader markets.

The relationship between the stock market and the economic cycle is reflected in several market sectors, each of which is sensitive to different periods of the cycle.

When the economy is booming, some sectors will outperform because investors and the general public have more money to invest, which fuels the growth. Although, industrials, consumer names, and real estate are the sectors that investors should avoid during a recession. Some of those stocks include:

Name Symbol  Change YTD Sector
American Airlines Group Inc  AAL -31.24% Consumer Discretion
Lucid Group Inc LCID -59.26% Automotive
Freeport-McMoRan Inc FCX -11.04% Industrials 
Chevron Corporation CVX +42.05% Energy
Halliburton Company HAL +55.15% Energy
Boeing Co BA -43.03% Consumer Discretion
Baker Hughes Co BKR +33.69% Energy
Schlumberger NV SLB +38.30% Energy
American Electric Power Company Inc AEP +1.40% Utlities
Carnival Corp CCL -54.74% Consumer Discretion
Posted In: AJ ListsEducationTop StoriesMarketsTrading IdeasGeneral

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.