Eight years following the Great Recession's end in 2009, TheStreet's latest monthly Trading Strategies roundtable offered up plenty of advice on how investors can potentially recession-proof their portfolios.
"Defense wins championships," TheStreet stocks columnist Stephen Guilfoyle told the panel. "That's when you want to be in your dividend-yielding names. That's when you want to be in your utility sector. That's what you want to be in staples. That's when you want to [buy] gold and you're going to want to be long Treasuries."
David Yoe Williams, principal at Strategic Gold, agreed with fellow panelist and fixed-income contributor Peter Tchir that a recession could be close, but disagreed with Tchir's assessment that it would be shallow and short.
"I'm more on the fringe," Williams said. "I think that we're not going to have a mild recession. I actually think that we're going to have a very deep recession once once it occurs." Williams believes the market will start seeing signs of a pullback before the year is out.
Tchir's advice for fixed-income investors is to own U.S. Treasuries or global sovereign debt. "I do think you want to avoid big global oil plays and big global energy plays -- things that are really relying on a robust economy," he said.
But panelist Douglas Borthwick, a foreign-exchange expert, believes that the Federal Reserve's involvement in the economy will help stave off any signs of recession in the near-term. However, he said that as the Fed unwinds its balance sheet, economic cracks could appear -- although "I think that's maybe seven years down the road. Maybe in the meantime you get very slight recessions -- down 0.1% here or there -- but the reality is you're not going to see the huge down 3% or up 4% for quite some time," Borthwick predicted.
Editors' pick: Originally published June 8.
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Editor's Pick: Originally published June 8.