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Fast Money DisclaimerFast Money BiosAbout Fast MoneyRapid RecapFast Money Home
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Jan.24
6:39 PM ET
Thursday, 24 Jan 2008
Recessions: They're Not So Bad!

Did you know historically the S&P has jumped big time in the period immeidately following a recession?

Specifically, during a recession the S&P remains unchanged but in the six months after a recession it explodes, explains Dylan Ratigan, charging 12% higher on average.

If we’re in a recession, I think investors ought to be in consumer staples, healthcare and material stocks says Jon Najarian. Here’s why.


SECTORS DURING RECESSION (RELATIVE TO S&P 500)

Sector                         ETF                 % Change

Health Care                  XLV                   +5%
Materials                      XLB                   +2%
Consumer Staples          XLP                   +10%

Source: Birinyi Associates

Also, have some put protection in place along with owning the underlying stocks, Najarian counsels.

And even if the recession doesn't play out names that I think will perform well either way include Merck (MRK), Dow Chemical (DOW), Monsanto (MON) and Procter & Gamble (PG).

I agree, says Guy Adami, of course it depends on where we are in the cycle. It’s quite possible that by spring Monsanto, as well as Freeport McMoRan (FCX) and Potash (POT) could all go a lot higher.

Recessions: They're Not So Bad!
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Trader disclosure: On Jan 24, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Najarian Owns (C), (COP), (CSCO), (EBAY); Najarian Owns (AAPL) Options, (WM) Options, (YHOO) Options; Finerman Owns (GS), (HD), (MO), (MSFT); Finerman’s Firm Owns (HD), (MO), (SUN), (TSO),(VLO),(WMT), (YHOO),(SPG); Finerman is Short (FS); Finerman is long (FS) and long (FS) puts; Tim Seymour is Owns (AA), (DELL), (INTC), (MER), (MSFT); Tim Seymour’s firm owns (AAPL), (COP); Jon Najarian Owns (PG), (MON), (DOW), (MRK), (AMGN)

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