In the stock market, there are companies that are suited towards performing better during times of economic stress. In an earlier article ‘Recession-Proof Growth Stocks,’ we had profiled some sectors and stocks. Continuing a similar theme, which has benefited our Graycell portfolios, we wish to shed light on another recession-resistant industry: the for-profit education sector.

During a recession, the stock market relentlessly punishes growth investors buying long positions in stocks. Since the level of confidence in earnings estimates erodes rapidly and growth rates are hard to predict, stocks across industries correct and continue to decline further over time.

However, there are stocks and sectors that do not succumb to slowing or negative economic growth, and materially outperform the broader stock market. It is important for investors to ferret out such names in order to outperform the market.