I’m a Financial Advisor: 3 Best Industries To Invest in During an Economic Downturn
Written by
Laura Bogart
Edited by
Kristen Mae
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Many financial forecasts are predicting economic turbulence ahead. You’re doing everything you can to protect yourself against the bumps and jolts of a potential economic downturn, like boosting your emergency fund and cutting back on spending. But you still want to find ways to grow your wealth, and that includes investing.
Given all the doom and gloom in the news, you’re also probably wondering if any industries are still safe enough to invest in. The good news is that some sectors remain solid, even in more turbulent times. According to some financial experts and advisors, these industries offer stability and potential growth during downturns.
Real Estate
It’s true that real estate values can decline in economic downturns, but that doesn’t mean it’s a bad investment. According to Adam Hamilton, CEO of REI Hub, downturns can present opportunities to buy property at lower prices than in previous years.
And, to put a new spin on the old saying: What goes down often comes back up.
“You can feel pretty confident in knowing that once the economy starts exiting the downturn, your property will appreciate in value,” Hamilton said. “If you rent your property out, you can also generally feel pretty confident that regardless of the economic state we’re in, you’ll be able to find renters.”
Companies That Make Consumer Essentials
According to William Hubbard, portfolio manager and founder of Cirrus Capital, it’s difficult to escape a downturn unscathed. However, there are some mitigating strategies you can apply to soften the blow, like investing in companies that provide essential goods and services — things people can’t go without, even in hard times.
“Think of companies that make things you’re going to need at some point,” Hubbard said. “That could be shaving cream (think Proctor & Gamble) or fixing part of your home instead of paying someone (think Home Depot) or even if jobs are lost, but companies still need payroll (think ADP).”
These companies tend to have consistent demand, making them more resilient during downturns.
“It also provides some peace of mind to know that [these businesses will] survive whatever economic storm comes our way — unless people stop shaving,” Hubbard added.
Gold
For Julia Khandoshko, CEO of brokerage firm Mind Money, one investment stands out as a safe bet during turbulent times: gold. She calls it a special asset that remains independent of political shifts, economic crises, and market fluctuations.
“Unlike stocks or bonds, its value isn’t tied to yields or multipliers,” she said. “Modern investment strategies are based on the principle that capital must work and make a profit. Assets are valued based on their ability to generate cash flow — companies are appreciated by income, real estate by rent, and bonds by coupons. Gold doesn’t fit into this logic. It doesn’t earn, but simply exists and helps to save capital.”
In other words, no matter how much the financial landscape changes, gold retains its intrinsic value.
“And the more complex the world becomes, the more important the assets that don’t depend on anything,” she said. “This is the ‘magic’ of gold. Investors are not buying a company, a market or expectations — they’re buying something that will always be simple.”
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