Jeff Bezos issued a financial warning: ‘Hold Onto Your Money

Jeff Bezos issued a financial warning: ‘Hold Onto Your Money

Jeff Bezos, the founder and executive chairman of Amazon, has issued a warning.

Bezos stated in an interview with CNN that the economy “doesn’t look good right now.”

“Things are slowing down. You’re seeing layoffs in many many sectors of the economy.”

And that means you might want to tighten up your budget.

“If you’re an individual considering purchasing a big-screen TV, you might want to wait, hold onto your money, and see what transpires,” the billionaire recommends. “The same is true with a new automobile, refrigerator, or whatever else. Just remove some risk from the equation.”

That is hardly promising for investors.

However, not all businesses are the same. Some, such as the three described below, may be able to do well even if the economy enters a recession.

Utilities

Companies in the utility industry offer power, water, natural gas, and other critical services to homes and businesses.

The industry isn’t especially fascinating, yet it is recession-resistant: People will still need to heat their houses in the winter and turn on the lights at night, regardless of what happens in the economy.

High entry barriers maintain current utility firms’ profitability. The infrastructure required to deliver gas, water, or electricity is relatively costly, and the business is heavily controlled by the government.

The sector is also noted for delivering consistent dividends due to the recurrent nature of operations.

If you’re seeking the best utility stocks, the firms in the Utilities Select Sector SPDR Fund (XLU) are a fantastic place to start.

Healthcare

Healthcare is a typical example of a defensive industry due to its lack of correlation with economic ups and downs.

At the same time, the industry has a lot of long-term development potential because of positive demographic tailwinds especially an older population, and a lot of innovation.

It may be tough for average investors to select certain healthcare stocks. However, healthcare ETFs can provide a diverse and profitable approach to obtaining exposure to the sector.

Real estate

The inclusion of real estate on this list may appear counterintuitive.

While mortgage rates have been rising, real estate has shown resilience in the face of rising interest rates, according to investment management firm Invesco.

“Between 1978 and 2021, there were 10 distinct years where the Federal Funds rate increased,” Invesco says. “Within these 10 identified years, US private real estate outperformed equities and bonds seven times and US public real estate outperformed six times.”

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