Six stocks to weather the recession

Economists are, on the whole, pessimistic about prospects for the global economy. But some stocks could see you through, say John Stepek and Tim Bennett. Here, they pick six.

Economists are often accused of being overly gloomy. But in fact, they are optimistic to a fault.

While markets may have predicted six out of three of the last recessions, as the saying goes, the track record of the so-called dismal profession is nowhere near that good. According to the New York Times, a recent study examined average economic forecasts made ahead of 60 different national recessions during the 1990s. In 97% of cases, economists failed to predict a recession a year before it happened. "On those rare occasions when economists did successfully predict recessions, they significantly underestimated the severity of the downturns," and many "failed to anticipate recessions that occurred as soon as two months later", it noted.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.