CNBC's Jim Cramer said he's not sure whether the economy is headed for a slowdown, but on Tuesday he gave investors stocks to look into in case it is.
"I don't know if we're headed for a slowdown, but I do know it makes sense to dip your toe into the consumer packaged-goods stocks, true recession stocks, if only so that you'll have all your bases covered, and because they've gotten cheap," Cramer said.
He added that during a slowdown, the consumer "retrenches," going back to the store to buy goods and make "the dollar stretch a little further." Cramer in particular highlighted consumer packaged-goods stocks like Pepsico and Mondelez. He also mentioned Procter & Gamble and Hershey, which he said reported good quarters but have seen recent dips, suggesting an opportunity to buy stock of a good company for a low price.
"None of these recession stocks work if the economy stays white hot, but they make good protection in case Jay Powell says something really harsh on Friday that makes us terrified of a slowdown," Cramer said, referring to the Federal Reserve chair's upcoming speech at the central bank symposium in Jackson Hole, Wyoming.
"I like Pepsico and Mondelez the most, they can be bought right here, although you've got my permission to buy any of the ones I just mentioned, because your portfolio, at this stage in the game, does need the insurance of a slowdown stock."
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