3 Mega-Cap Stocks to Own When the Next Recession Strikes
The U.S. economy just did something pretty special: It went an entire decade without dipping into recession. Considering that recessions are a natural part of the economic cycle, it's only a matter of time before gross domestic product (GDP) growth slows and eventually retraces for what'll likely be a short period of time.
When recessions strike, investor portfolios often take a hit. This means traditionally cyclical business models, as well as stocks with premium valuations, feel the brunt of the pain.
But this isn't always the case for mega-cap stocks. A mega-cap stock is a company with a market cap of at least $200 billion that almost always has a time-tested business model. While some megacaps would find themselves in less-than-enviable positions if a recession hits (e.g., Amazon's retail business would likely see sales slow considerably, while Facebook's ad-pricing power might dip), others would be set to thrive.
Source Fool.com
