As we are currently in a recession, with a soaring high inflation rate of 14.6% in Egypt and a drastic decrease in output, it is best to place your money in safe industries such as healthcare, food & beverages and energy (more specifically green energy). These kind of stock are considered defensive stocks as they do have steady slow growth during a booming economy, however during recession these are the industries that are guaranteed to continue operating and provide product and services as they are needed by consumers.
Healthcare – this includes pharmaceuticals, private hospitals etc. During the past two years, healthcare institutions focused on investing in digital health technology, changing how we are able to access healthcare (technology is bringing healthcare to people’s homes) and reducing costs. Overall, healthcare will continuously be an essential need for us, making it a great investment during recessions.
Food and beverages– during tough times, people will still need to purchase groceries and consume food and beverages, therefore investing in this consumer staples is considered a safe and stable investment.
Renewable energy – During the previous recession of March 2020 (due to COVID), the renewable energy industry maintained great results despite the global economic downturn. As current market leaders and governments are strongly concerned about climate change, they are prioritizing investments in green energy alongside other necessities. This makes the renewable energy industry an appealing investment.
