A market bubble bust, financial crises, natural disasters, or global economic shocks are all common triggers for a recession. Since Russia invaded Ukraine on February 24, the economic situation has become very unstable and out of control. Consumer confidence has taken a knock as oil prices have surpassed $130 per barrel and the energy crisis has reached new heights, resulting in fewer spending across the global economy. The market may experience a slight recession if the Fed continues to fight inflation with rate hikes, but inflation will be kept under control. Goldman Sachs has dropped its growth forecast for the United States, cutting its full-year real GDP growth predictions for 2022 by 25 basis points to 1.75 percent. The impact of Russia’s war on the US economy was highlighted by Rob Sechan of NewEdge Capital Group. According to Sechan, if a recession occurs, the S&P 500 might fall to 3200. In the short term, BNY Mellon Wealth Management’s Alicia Levine expects the market will continue to fall.
Insider Monkey selected 10 stocks to buy before the next recession. Alcoa Corporation is a manufacturing business that makes alumina, aluminum, and bauxite. The firm’s products are used in a variety of industries, including technology, mining, refining, smelting, fabricating, and recycling. Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space are the four core businesses of Lockheed Martin Corporation, an American defense and aerospace company. The stock has increased by 26.70 percent year to date, as military businesses have attracted institutional interest in the wake of Russia’s invasion of Ukraine. Dollar Tree, Inc. is well positioned to benefit from a potential recession, as more customers will switch from branded brands to lower-cost alternatives. The stock has risen about 70% in the previous six months, and it reported results that were higher than expected in the fourth quarter of 2021. Potash, urea, and phosphate are mined and extracted by The Mosaic Company, a Florida-based agriculture and fertilizer company. Fertilizer prices are steadily growing as a result of Russia’s sanctions, which have created a major supply deficit in the global economy. Target Corporation is a big-box retailer with locations across the United States. For the December quarter, the company posted profits per share of $3.19, $0.35 higher than market expectations. In the last year, the stock has increased by 19.50 percent. For more details, click 10 Stocks To Buy Before The Next Recession.