Sectors to invest in Q3 to prepare for recession

Providence Financial CEO Anthony Saccaro joins Wealth! to give investors insight into the sectors they should be considering in the third quarter of 2024.

Saccaro says this could be a good time to prepare for a recession later in the year: “Consumer staples is a reasonable sector, I think. It hasn’t done well, it hasn’t done well recently. It’s up, I think, 7.5% so far this year. 2023 wasn’t a good year. But it’s a defensive sector. They can pass on the cost of inflation to the consumer. And you’re still going to buy toothpaste no matter what. So you know, consumer staples is a good sector, I think, to focus on if you think the recession narrative has the potential to play out. Same thing with utilities for a lot of the same reasons.”

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This post was written by Nicholas Jacobino

Video Transcription

But as we look at the sectors that investors should be looking at in the third quarter, which ones are you currently betting on?

Yes, Brad.

Well, the truth is that if we think about a recession, I don’t know if it will happen in the third quarter or later.

Well, I don’t think Q3 is a good time, but looking forward, you have to prepare for that before the recession hits. By Q3, it’s probably time to start developing the consumer staples sector, which I think makes sense.

It didn’t work.

Um, it didn’t do so well this year, it was up, I think, seven and a half percent, 2023 wasn’t good, but it’s a defensive sector.

They can pass on the costs of inflation to the consumer, and you’ll still buy toothpaste no matter what.

So I think it’s worth focusing on the consumer staples sector.

If you think the recession narrative has a chance of coming true.

The same goes for utility companies, for many of the same reasons: you have to keep paying your gas and electricity bills.

So I think this is another way to pass inflation on to consumers.

I think this is another sector worth focusing on.

And finally, real estate investment funds. This sector has not been doing well for several years due to high interest rates caused by high real estate prices.

But if interest rates fall, many experts believe the housing market will appreciate again, rents will become more active and inflation will be passed on to tenants.

So the reality is that I think this is a potential that has a chance to develop and that we will get high dividends not only from the cane companies but also from the utilities and consumer staples companies.

So I think these are three sectors that if we believe the recession narrative, at some point it’s inevitable.

Er, that’s three sectors.

I think that’s probably a good thing.

It’s good that we focused on Anthony Scar of Providence Financial and Insurance Services, President Anthony.

Good to see you.

Thank you very much for your time.

Thank you, Brad.

Thanks for the invitation.