A financial advisor who taught over 100,000 Black women how to invest in stocks says 4 investments are 'recession-proof'

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  • Financial advisor Cassandra Cummings has taught more than 100,000 Black women start investing in the stock market.
  • Cummings says a recession is the best time to start investing because stocks are ‘on sale.’
  • Here are four investments she recommends for beginners, including REITs and dividend stocks.

With many economists forecasting a recession in the US this year, you may be wondering if now is a good time to invest in the stock market. With the uncertainty about the economy, you might be inclined to wait it out and play it safe, especially if you’re just getting started as an investor.

Financial advisor Cassandra Cummings, who teaches 100,000 Black women how to start investing through an online community called The Stocks & Stilettos Society, says this is the perfect time for beginner investors to start building wealth.

“This is when the stock market is on sale,” says Cummings. “Recessions are temporary. They don’t last forever. So this is an opportunity for you to get in at a low price and give yourself an opportunity to get educated.” 

Cummings also suggests finding a financial advisor or community you can trust throughout your journey.

“It helps when you’re surrounded by people who look like you,” she says. “A big part of the community we’ve built with The Stocks & Stilettos Society is that [Black women] are able to see other women that look like them actually investing and making money in the stock market — and they thrive off that.”

Here are four recession-proof investments Cummings recommends for beginners.

1. Blue chip stocks

Blue chip stocks, like Apple and Coca-Cola, are the most reliable and well-known companies on the market. Because they’re stable, blue chip stocks tend to be favored by older or more conservative investors.

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“The new blue chip stocks are Google and Facebook,” says Cummings. “These are companies that you definitely want to invest in because they’re probably gonna be with us for the next generation.”

2. Consumer staples

Consumer staples are well-established companies that provide products and services that are consistently in demand, like health-care and pharmaceutical companies, for example.

“Consumer staples are stocks that people need, whether it’s good times or bad times — Colgate, Palmolive, Proctor and Gamble — these are recession-proof stocks,” explains Cummings.

3. Dividend stocks

Dividend stocks are shares of established companies that offer a predictable stream of income in the form of dividend payments. Blue chip companies are usually the most reliable dividend stocks, but this particular investment vehicle sees less growth over time than other stock types.

“Dividend income stocks are good go-to stocks because these companies still pay dividends during a recession,” Cummins says. 

4. Real estate investment trusts

Investing in real estate can require large sums of cash on hand to close sales, make renovations, and maintain properties.

On the other hand, real estate investment trusts (REIT) are companies that own, operate or finance income-producing real estate ventures. It’s an easy way to start investing in real estate if you don’t have the capital to invest in your own rental property.

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“Much like dividend stocks, REITs pay either monthly or quarterly dividends so your money is earning money, even as a beginner investor during a stock market downturn,” Cummins says.