There are very few types of companies that you could really call recession proof.
And then it is true there are few sectors of our economy that perform actually better during a recession.
For instance dollar stores and auto parts stores have historically done well during recessions.
It stands to reason that people want to save the money during a recession, so the super discounters like the dollar stores do quite well.
It also is quite evident even looking at this current recession that fewer people are buying new automobiles, as they are worried about losing their jobs and therefore they keep the vehicles they currently have until the recession has ended.
This means if something breaks down they have to get it fixed, rather than just making the decision to buy a new car because it's about time anyway.
Another type of company that does extremely well is in the Rent-to-Own industry.
This is because folks cannot afford to buy certain high ticket items but they really need them, so they will rent them under a contract where a certain percentage of that rental goes towards future ownership.
Many of these types of companies have experienced a 40% increase in sales, that is to say a 40% increase in rentals during the recession.
This means such companies could be very good stocks to buy and hold until the recession ends.
No, I am not recommending putting all your eggs in one basket, but I am saying that perhaps it might be one of the stocks in your portfolio as Jim Cramer might recommend.
Perhaps you should do your own research, and consider all this.