Jim Cramer - Best Stocks During a Recession

For the latest Jim Cramer, go to http://JimCramerPicks.com - In a market this ugly, bull markets are tiny. It is like finding fewer needles in a larger haystack. It may seem like everything is falling apart. One good stock is Hormel. Another great market is direct selling. Avon and Tupperware had great quarters. Herbalife is also a great stock. These direct selling companies do the best in terrible recessions. During recessions, people are out of work, so they join these companies for some extra income. It is a global business. All three have the world to compete in with few competitors. The best of these three is TUP. 85% of their business is international, so you don't have to worry about the Federal Reserve. Second best is HLF. They keep blowing out their quarters and confounding the bears. However, it has moved up too much already. Avon (AVP) also makes 75% of their sales from the rest of the world, including Brazil and China, where the economies are looking good. The Avon US business isn't that great, which is why they aren't up as much.

Comments

1. most stocks in the oil/gas market seems to always do great during a down turn in the economy…. Also, altria and Phillip Morris stay strong,,, the more people worry, the more they seem to smoke and drink and that goes true with chocolate and beer companies as well. Also, when the housing market crashes,,,, stocks like Home Depot, Lowes and Ace Hardware do a bit better, because when people can't buy new houses… they fix their old ones,,, that also goes true with auto parts stores like Autozone and Advance and Pep Boys. And usually gold goes up when the stock market drops way down.
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