Money is not the important thing in life, but money does affect everything that is important.
Money and life
Many investors have learned to ‘recession-proof’ their portfolios. They buy stocks only in McDonald’s, Coca-Cola, or Johnson & Johnson, and other such ‘consumer growth’ companies that tend to do well in cold climates. They ignore the likes of General Motors, Reynolds Metals, or U.S. Home Corp. These are examples of ‘cyclical’ companies that suffer in cold climates. Cyclical companies either sell expensive products, make parts for expensive products, or produce the raw materials used in expensive products. In recessions, consumers stop buying expensive products.
