3 Recession-Proof Stocks for 2025

Summary

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.

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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.

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

Transcript

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[Financial Analyst 1]

Proof stocks that people can invest in to protect themselves from the downturn? I know everyone is so concerned about if the market continues to collapse, but I think there's a few companies that will do well regardless in the retail space. Costco I love dearly. Near and dear to my heart. Almost immovable. Regardless of what happens in the economy. Number two, Nvidia. Love you guys dearly. Thank you. We'll never switch up on you. From the bottom of my heart and Troy, your baby. I gotta listen, I gotta give you credit. Tsm. I keep saying that if TSM was primarily in America, headquartered in America, I would have been divorced. You.

[Financial Analyst 2]

We're getting closer. It's getting closer to being America.

[Financial Analyst 1]

Yeah.

[Financial Analyst 2]

Every day.

[Financial Analyst 1]

Yes. So those are my three.

[Financial Analyst 2]

This is. It's an interesting question because if you look at the history, have we been in a recession before? We saw a brief one. And so what were the companies that thrived there? I'm glad you brought up the retail space. You brought up Costco because a lot of people would think Walmart. But it makes me think that one of my other ones like TSM was, was my favorite. I think Amazon would probably be like 1B. 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. Right. We're five years removed from COVID and we remember what our life was like when we just had to use Amazon.

[Financial Analyst 1]

Yeah.

[Financial Analyst 2]

And we were able to get everything right. And that's just from retail space. But obviously what they can do inside the pharmaceutical space, they just again, I mean that the branches under that, under that tree of the, of Amazon is just so vast that I think, I think they thrive in any environment. PNG is another one we're always going to need. Home items is one of those ones that's not sexy but it's a stable company that has shown growth throughout the years. And I would put Netflix in there too. I think that would be my.

[Financial Analyst 1]

If it was cheaper I would have mentioned it. But for sure Netflix is probably. Is Netflix the best subscription run business consumer facing ever? Like their numbers are insane.

[Financial Analyst 2]

Them and Apple, them and Apple.

[Financial Analyst 1]

Yeah, yeah.

[Financial Analyst 2]

But as a singular product, that's the singular product.

[Financial Analyst 1]

Them. Yeah.

[Financial Analyst 2]

Apple is kind of like the, the pro. The product is the phone and the subscription services just kind of get added on. But yeah, and the, the room for growth is there. Right. You talk about from a global capacity, there's still countries that they haven't reached for sure.

[Financial Analyst 1]

It's a lot of addressable markets they have not tapped into yet. And you know if they get into allegedly podcasts and the streaming wars of content creators.

[Financial Analyst 2]

Yeah. And, and the CEO said they're not, they're doubling down on the spending. I know that used to be. How are they going to generate revenue from a original content space? Original content space. Well, they've showed you they've moved into live events now they're going to double down on more original content. So yeah, scaling looks likely. Phone.

[Financial Analyst 1]

How do you feel about Oscar? I thought this is a great question and I wanted to take some stocks that we have not talked about before. I see what you may see in the potential of this company but I got to be very clear as of right now, I hate it all time high. 35 bucks in 2021 is currently at 13 bucks. If you can get it at 3 or 4 bucks I would not mind you swing trading it back up to 10 or 11. But as a long term hold, this is a definite no. You can argue Hims, hers, Lily of course are much better. And then companies that are tech health adjacent, Amazon, Apple Novo are way better. I don't think Oscar's in the top 25. So for a long term hold, no. If it's a trade, if you get it at three or four bucks and ride it up to 11, I'm good with that. But as a long term hold, this is a definite no.

[Financial Analyst 2]

Yeah, it's a, it's in a tough spot. It's for those who are not to know, it's a leading healthcare technology company and they operate individual healthcare insurance markets through the Affordable Care act, which was Obamacare, which yeah, an administration has now changed. And one of the campaign promises was we're going to get rid of that. Even though there was no plan really laid out to how to, how to get rid of it. What we've seen is in the first, we haven't hit 100 days yet, but the things that he said he was going to do, he's doing them.

[Financial Analyst 1]

Oh, he's looking at anything that he's going to do.

[Financial Analyst 2]

He's, he's, he's doing it. In fact, his approval rating is at its all time high. They just, NBC just put that out last night. That is approval rating, Donnie.

[Financial Analyst 1]

Really?

[Financial Analyst 2]

Yeah. I was like huh.

[Financial Analyst 1]

But yeah, some done. Wow. Okay. Yeah.

[Financial Analyst 2]

Yeah. So I don't think Oscar is in a good spot.

[Financial Analyst 1]

No. And they only reported 25 million dollar net income. Like soldier boy should not have as much money as your investment and your portfolio. I'm good shots big soldier, but no, I'm good. Lily Novo. There's a bunch of others you can invest in that are a hell of a lot better.

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