1.During a recession, most investors should avoid investing in companies that are highly leveraged, cyclical, or speculative, as these companies pose 2.the biggest risk for doing poorly during tough economic times. A better recession strategy is to invest in well-managed companies that have low debt, good cash flow, and strong balance sheets. 3.Counter-cyclical stocks do well in a recession and experience price appreciation despite the prevailing economic headwinds. 4.Some industries are considered more recession-resistant than others, such as utilities, consumer staples, and discount retailers.