Market Mondays Episode 3: Recession-Proof Stocks for 2025

Release Date: March 23, 2025
Host/Author: EYL Network
Guest: Ian Dunlap, Stock Market Expert
Description: In this episode of Market Mondays, hosted by the EYL Network, Earn Your Leisure team and stock market expert Ian Dunlap delve into strategies for making money in the stock market, even during challenging economic times. They explore recession-proof stocks poised to perform well in 2025 and answer investment questions from live callers.

Introduction

In Episode 3 of Market Mondays, the discussion centers around identifying recession-proof stocks that investors can consider for their portfolios in the year 2025. With economic uncertainties looming, the experts aim to provide actionable insights to help listeners safeguard and grow their investments regardless of market conditions.

Identifying Recession-Proof Stocks

Costco: The Retail Stabilizer

Financial Analyst 1 emphasizes the resilience of Costco, stating:

"Costco I love dearly. Near and dear to my heart. Almost immovable. Regardless of what happens in the economy."
(00:01:00)

Costco's strong membership model and consistent demand for bulk goods make it a stalwart in the retail sector, capable of weathering economic downturns.

Nvidia: A Tech Powerhouse

Shifting focus to the technology sector, Financial Analyst 1 praises Nvidia's robust position:

"Love you guys dearly. Thank you. We'll never switch up on you."
(00:01:00)

Nvidia's dominance in graphics processing and its expansion into AI and data centers position it well for sustained growth, even in a recessionary environment.

TSM (Taiwan Semiconductor Manufacturing Company): Manufacturing Excellence

TSM is highlighted as another strong contender:

"I keep saying that if TSM was primarily in America, headquartered in America, I would have been divorced."
(00:01:39)

Despite geopolitical tensions, TSM's pivotal role in the semiconductor industry underpins its stability and long-term prospects.

Amazon: E-commerce Giant

Financial Analyst 2 adds Amazon to the list, noting its expansive reach:

"We remember what our life was like when we just had to use Amazon."
(00:02:22)

Amazon's vast logistics network and diversified business segments, including cloud computing through AWS, ensure its resilience against economic shifts.

Netflix and Apple: Subscription Titans

The conversation also highlights Netflix and Apple as reliable subscription-based companies:

"If it was cheaper I would have mentioned it. But for sure Netflix is probably... the best subscription run business consumer facing ever."
(00:02:55)

"Apple is kind of like the, the pro. The product is the phone and the subscription services just kind of get added on."
(00:03:16)

Both companies boast strong customer loyalty and recurring revenue streams, essential traits for enduring economic downturns.

Evaluating Oscar Health

The discussion shifts to evaluating Oscar Health, a healthcare technology company:

Financial Analyst 1 provides a critical view:

"As a long term hold, this is a definite no. You can argue Hims, hers, Lily of course are much better."
(00:04:03)

Despite Oscar's leadership in individual healthcare markets, recent financial performances and market position raise concerns about its suitability as a long-term investment.

Financial Analyst 2 adds context regarding the political landscape impacting Oscar:

"Oscar is in a tough spot... operating individual healthcare insurance markets through the Affordable Care Act."
(00:05:11)

The uncertainty surrounding healthcare policies further complicates Oscar's investment appeal.

Market Insights and Strategies

Throughout the episode, the analysts discuss broader strategies for investing during a recession:

• Diversification: Spreading investments across various sectors, such as retail, technology, and healthcare, to mitigate risks.

• Focus on Essentials: Investing in companies that provide essential goods and services, ensuring stable demand regardless of economic conditions.

• Long-Term Vision: Prioritizing companies with strong fundamentals and growth potential over speculative short-term gains.

Notable Quotes

• Financial Analyst 1:

  "Costco I love dearly. Near and dear to my heart. Almost immovable."
  (00:01:00)

• Financial Analyst 2:

  "Amazon would be one of those companies that I would definitely look in terms of can they still thrive in that environment and for sure."
  (00:02:22)

• Financial Analyst 1:

  "As a long term hold, this is a definite no."
  (00:04:03)

• Financial Analyst 2:

  "His approval rating is at its all time high."
  (00:05:46)

Conclusions

Episode 3 of Market Mondays offers a comprehensive analysis of stocks that demonstrate resilience in the face of economic downturns. By focusing on companies with strong market positions, essential services, and recurring revenue models, investors can build portfolios that withstand recessions. While some stocks like Costco, Nvidia, TSM, Amazon, Netflix, and Apple emerge as reliable choices, others like Oscar Health require careful consideration due to market and political uncertainties.

Listeners are encouraged to adopt diversified investment strategies, prioritize essential and stable companies, and maintain a long-term perspective to navigate the complexities of the stock market in 2025.

For more insights and detailed discussions on investing and money management, tune into upcoming episodes of Market Mondays.