Fortunately, the strict definition of a recession, or two consecutive quarters of negative GDP growth, hasn't been met this year, but smart investors prepare for the worst. Preparation against economic slumps often involves embracing defensive sectors, including utilities. Utilities join consumer staples and healthcare as traditional defensive sectors, on the basis that no matter how bad the economy gets, people will keep the lights on, continue eating, and tend to their medical needs. Utilities stocks don't deliver big gains during recessions. Image source: Getty Images.
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