💨 Abstract

The article discusses how stock prices and the economy are interlinked. In a strong economy, consumers spend more, leading to higher corporate earnings and potentially higher stock prices. Conversely, during economic slowdowns, consumer spending drops, reducing corporate earnings and often leading to falling stock prices. The article also highlights different strategies investors use to build resilient portfolios during potential recessions, such as focusing on defensive sectors like consumer staples, healthcare, and utilities, or investing in bonds with high credit quality.

Courtesy: WTOP Staff