June 29, 2020 'COVID Is Different': How Coronavirus Upended the Rules of Investing in a Recession

Summary: by Mallika Mitra If you thought you knew the typical rules of investing during a recession, the coronavirus may have proved you wrong. Usually, defensive stocks tend to fare better during an economic downturn. These include essential industries, like utilities, consumer staples and health care. Cyclical stocks, on the other hand, have a harder time weathering a recessionary storm, as people stop buying discretionary purchases.