Sin Stocks Won’t Fade Even If The Economy Does

Memories are short. It’s easy to look at today’s strong economic growth and think it will continue upward forever. But it won’t.

As we enjoy a robust period of economic growth, investors should be mindful that we are potentially poised on the precipice of another downturn.

If that happens, investors will want to make sure that their portfolio is protected with stocks that are recession-resistant.

Among these stocks are sin stocks, according to this article from The Motley Fool.

What’s interesting about sin stocks is: they aren’t optional purchases; many of them (including cigarettes) are considered necessary purchases and therefore sales don’t decline even when spending in other areas does decline.

You may not love the ethics of sin stocks. But you’re not buying those products. However, you can still invest in the underlying stock because you recognize that people will continue to enjoy their vices no matter what the economy does.