Sat May 17 2025, by Tyler Gardner

How to Invest $1 Million in a Recession

As a former financial advisor and portfolio manager, here’s exactly how I would invest $1 million in a recession. If any of this is helpful, sign up for my free newsletter by clicking the link in my bio.

1. $100,000 in Cash or Cash Equivalents

Invest this in a fund like S-Gov for liquidity and buying opportunities during downturns.

2. $200,000 in Consumer Staples

People always need groceries and personal care items. Invest in this sector through ETFs like Vanguard's Consumer Staples ETF (BDC) or SPDR's Staple Select Fund (XLP).

3. $200,000 in Healthcare

Healthcare is non-cyclical, meaning people need it no matter what the economy is like. You can invest in it through funds like Vanguard's Healthcare ETF (VHT) or SPDR's Healthcare Select Fund (XLV).

4. $50,000 in Utilities

No matter how bad the economy gets, people usually pay their utility bills to keep the water running and the lights on. Invest in this sector through SPDR's Utilities Sector (XLU) or Vanguard's Utilities ETF (VPU).

5. $100,000 in Discount Retail and Consumer Defense

When wallets tighten, consumers shift to discount retailers and budget-friendly brands. Invest by buying a fund like SPDR's Retail ETF (XRT) or a range of stocks like Dollar General, Costco, or McDonald's.

6. $50,000 in Gold and Precious Metals

Also known as safe haven assets, invest in this through a fund like iShares Gold Trust (IAU) or SPDR's Gold Shares (GLD).

7. $300,000 in Growth Assets for the Inevitable Comeback

You can invest in this through funds like Vanguard's VOO or Invesco's QQQ.

Conclusion

Recessions can be brutal, but shifting to a risk-off allocation strategy can help weather the storm. If you have any questions or need further information, don’t hesitate to reach out!

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