During a recession, the focus tends to be on the worst performers - the biggest names in the news are Bitcoin and FTX, as their respective prices crash or go bankrupt.
Meta Platforms Inc. and Netflix Inc. have had terrible years, and many have been happy to kick them while they are down.
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These are great cautionary tales, but more important are the sectors that thrive during a recession. Internet-based companies in 2000 and banks in 2008 both received their share of attention, but that doesn't help you make money. Consumer staples like Walmart Inc. WMT, which came out seemingly unphased on the other side of 2000 and 2008?
While Walmart and other consumer staples are still doing well during the current downturn, with Walmart teetering around all-time highs, another sector seems to be thriving: gaming.
Microsoft Corp. MSFT and Electronic Arts Inc. EA are both hovering around all-time highs, with Microsoft's gaming division consistently posting record quarters. Electronic Arts reported a record quarter, with nearly $2 billion in revenue in its most recent earnings report. While Meta's stock has declined, its virtual reality gaming division has been one of the few areas of growth within the company.
Startup investments can be a great option for those who are looking to diversify their portfolios and lean toward high-risk, high-reward side of investing. Startups, especially during the recessions, can be a lucrative option because those that survive come out leaner and with less competition, allowing them to quickly take market share. Gameflip is a startup that takes advantage of the gaming and digital assets market. It has more than 6 million users on its platform.
Gameflip recently launched an equity crowdfunding campaign. Anyone can invest in this gaming startup for a limited time.
See more on Benzinga's investment.