Prepare for Downturn: Focus on Resilient Businesses

No one can predict when the next recession will occur, but it's inevitable that one will happen. Successful investors always think about what the future might hold and adjust their strategies accordingly.

To recession-proof your portfolio, consider adding to your cash position. Instead of allocating new money to buy stocks, let it sit in cash. This provides financial capacity to purchase undervalued securities when a downturn occurs.

Recessions present opportunities for high-quality businesses with steady financial performance. Healthcare and consumer staples companies, such as Johnson & Johnson (JNJ) and Procter & Gamble (PG), are resilient during economic downturns. Investors can also consider dividend stocks like those from Dividend Kings, which have a history of raising their payouts over time.