As the possibility of a full-blown recession sends stock markets around the world into a tailspin, some analysts recommend buying austerity stocks to ride out the storm.
Michael McCarthy, Chief Market Strategist at CMC Markets in Australia, recommends one of Australia's largest retailers Wesfarmers, based on the performance of one of its subsidiaries - Bunnings.
Bunnings runs a chain of Do-It-Yourself stores. Other subsidiaries of Wesfarmers include discount office supply stores as well as the Coles brand of shops that sell groceries to petrol.
"We're certainly seeing that (austerity theme) being played out here...The earnings coming out of Bunnings is supporting their (Wesfarmers) retail operations," he said.
Wesfarmers shares have risen almost 9 percent since August 9.
Besides Do-It-Yourself stores, fast food chains are also expected to do well as purse strings tighten.
Mark Matthews, Head of Research Asia at Bank Julius Baer is putting his money on McDonald's.
"That's what people eat when they're poor," he said. He's also optimistic about dividend yields as the American fast food chain further expands into emerging markets.
McDonald's has gained around 10 percent since August 9.
Conservative spending may not be a theme playing out in Asia, which is still enjoying strong growth, but Roger Tan, Vice President at SIAS Research says his top pick is a budget supermarket chain in Singapore, Sheng Siong.
"Sheng Siong, being a recognizable household name, is a defensive stock. By being able to providing non-discretionary consumer goods at cheaper prices than their competitors, they appeal to investors going on the defensive," said Tan.
Sheng Siong made its debut in Singapore on August 18 and has since risen around 37 percent.
Tan adds that Sheng Siong is a good pick for the next 3 to 6 months.