With an eye towards potential recessions, Saira Malik, the Chief Investment Officer of Nuveen Asset Management – an investment firm with over $1.1 trillion in assets under management – shares a checklist and stocks that could potentially hold up well regardless of economic downturn. Malik notes that weaker economic data, tightening of financial conditions, and a labor market contraction could lead to a mild recession as soon as late this year to early 2024.
To prepare for a recession, Malik recommends buying into high-quality stocks with solid free cash flow and dividend payouts. Citing the tech and mining industry, she points at Microsoft (MSFT), ServiceNow (NOW), NXP Semiconductors (NXPI), and Freeport-McMoRan (FCX) as companies whose products provide recurring revenue and reliable dividends. Microsoft is Malik’s biggest bet, and she believes its strong performance can be replicated by ServiceNow with tools to aid cost-savings for businesses. NXP is favored with the rise in Artificial Intelligence, EVs and rebound of the semiconductor industry. Furthermore, Freeport-McMoran is well-positioned in the long-term trend shift towards renewable energy and metal products including copper needed to power EVs.
Nuveen is a leading global investment firm offering mutual funds, ETFs, individual equity and hybrid funds, and fixed income securities. They are committed to providing clients – which range from asset managers, insurance companies, and pension plans to corporations, charities, and individuals – with the financial insight and better decision-making capabilities to weather all types of market conditions. As the Chief Investment Officer, Malik is in charge of the firm’s investment portfolio and provides guidance for Nuveen’s global research and portfolio management teams.
