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“Recession is inevitable,” says Elon Musk, who now thinks there’s a better than 50/50 chance the economy will go down. Here are three easy ways to keep your money safe.

Business | Finance | Market

“Recession is inevitable,” says Elon Musk, who now thinks there’s a better than 50/50 chance the economy will go down. Here are three easy ways to keep your money safe.

After the , the U.S. economy got back on its feet in a big way. , CEO of and a billionaire, says that the good times might be coming to an end soon.

“I think a recession is going to happen at some point,” he said earlier this month at the Qatar Economic Forum.

“It’s more likely than not that there will be a recession in the near future. It’s not a sure thing, but it seems likelier than not.”

This is not just what Musk thinks. A new survey by the Conference Board shows that more than 60% of CEOs around the think their region will be in a recession by the end of 2023.

What’s good? Some industries are less affected by a recession than others. Here are three of them to look at.

Consumer Must-Haves

Consumer staples are things that everyone needs, like food and drinks, household items, and personal care items.

matter what the economy is like, we need these things.

If the U.S. economy goes into a recession, it’s likely that the business of many companies will get worse. But Quaker Oats and Tropicana orange juice, both made by PepsiCo (PEP), will probably still be on families’ breakfast tables. Procter & Gamble’s (PG) well-known brands Tide and Bounty are likely to stay on lists from coast to coast.

ETFs like the Consumer Staples Select Sector Fund (XLP) and the Vanguard Consumer Staples ETF give you access to the group (VDC).

Utilities

The utilities sector is made up of companies that give homes and businesses electricity, water, natural gas, and other important services.

Even if the economy goes down, will still need to heat their homes in the winter and turn on the lights at night. This means that the sector is recession-proof.

Meanwhile, the profits of existing utility companies are protected by the fact that it is hard to start a new one. Building the infrastructure needed to get gas, water, or electricity to people is very expensive, and the government has a lot of rules for the industry.

Because business is done over and over again, this sector is also known for paying out reliable dividends.

If you want to find the best stocks in the utilities sector, the names in the Utilities Select Sector SPDR Fund (XLU) are a good place to start.

Healthcare

Healthcare is a great example of a defensive sector because it doesn’t move up and down with the rest of the economy.

At the same time, the sector has a lot of potential for long-term growth because of factors like an aging population and a lot of new ideas.

It might be hard for the average investor to figure out which healthcare stocks to buy. But healthcare exchange-traded funds (ETFs) can be a diversified and profitable way to invest in the area.

Vanguard Care ETF (VHT) gives investors a wide range of exposure to the healthcare sector.

Investors can use names like Biotechnology ETF (IBB) and iShares U.S. Medical Devices ETF to get into certain parts of the healthcare market (IHI).

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