8 ASX Stocks to Build a Recession-Proof Portfolio: Buy Now
By Janine Cox and Fil Tortevski
When the talk of recession dominates headlines, investors start asking a critical question: can my portfolio withstand a downturn or even thrive during one?
In this week’s episode of the Wealth Within Australian Stock Market Show, Senior Analyst Janine Cox, Host Filip Tortevski, and market strategist Zoran Kresovic tackle the prospect of a “silent recession” in Australia, exploring how investors can build a recession-proof portfolio by focusing on stable, defensive, and income-generating stocks.
Are We Already in a Silent Recession?
Inflation remains stubbornly high, GDP growth has slowed to levels not seen since the 1990s, and consumer confidence is at its lowest since the pandemic. While unemployment remains low, weak productivity and real wage stagnation suggest storm clouds may be forming.
As Janine Cox noted, “Some parts of the economy are showing stability, but when you combine slowing growth with rising costs, the pressure is definitely mounting.”
In this environment, investors must sharpen their focus, identifying which sectors and stocks have the resilience to keep portfolios intact when economic growth stalls.
For those looking to navigate such volatile conditions, beginning with one of Wealth Within’s trading courses can provide the technical foundation and confidence to trade smarter, not harder.
Defensive Sectors to Watch
When times get tough, money flows toward safety. Historically, consumer staples, healthcare, infrastructure, and energy act as buffers during inflation and slowdowns.
Zoran Kresovic pointed out, “In an inflationary or rate-hiking period, defensives like infrastructure, energy, and consumer staples tend to outperform. Banks can also benefit temporarily from higher net interest margins.”
Let’s take a closer look at some of the standout stocks discussed in the show.
Stock 1: Woolworths (ASX: WOW)
Woolworths remains one of Australia’s most reliable consumer staples plays. Despite a steep 40% pullback from its all-time highs, Janine Cox believes the stock has now bottomed out.
“Once Woolies broke through the $32 level last month, it flagged a turn in direction. This could be a key opportunity for investors looking for recession resilience,” she said.
While the stock has already rallied sharply, investors may want to wait for a short-term pullback before entering.
Stock 2: Coles Group (ASX: COL)
Like Woolworths, Coles provides stability and longevity for portfolios built around essential services. Though younger in trading history as a standalone company, its long-term chart remains constructive.
Zoran noted that Coles “is hovering around the key $20 level.” Though slightly riskier than Woolies in the short-term, it shares many of the same defensive characteristics thanks to Australia’s unwavering demand for groceries.
Stock 3: Ramsay Health Care (ASX: RHC)
Healthcare traditionally performs well during downturns since medical needs remain constant regardless of market conditions.
Ramsay Health Care, however, has fallen heavily, down 63% from its peak. Yet Janine believes it could be turning a corner: “If we see confirmation of a reversal supported by higher lows, this may develop into a strong medium-term opportunity.”
This makes Ramsay one to watch for recovery potential as global health expenditure continues to expand.
Stock 4: APA Group (ASX: APA)
Infrastructure operator APA Group owns and manages energy assets, an area often resilient to market stress thanks to stable cash flow.
Zoran highlighted the stock’s long-term reversal: “If it breaks above $9.50, APA could provide a great entry with upside towards $11.” The strong upward trend since late 2025 signals a shift from prolonged decline to renewed growth potential.
Stock 5: Transurban Group (ASX: TCL)
Another infrastructure favourite, Transurban continues to generate consistent dividend yields from its toll road assets.
However, as Zoran observed, “It’s been moving sideways for almost seven years. While it’s not a buy right now, a breakout above $16 would signal a promising new trend.”
This stock exemplifies the type of longer-term, lower-risk play suitable for investors seeking steady returns during uncertain economic times.
Stock 6: Telstra Group (ASX: TLS)
Telstra, once seen as a stagnant legacy provider, has re-emerged as a defensive giant. Following years of restructuring, it now boasts stable cash flows and solid dividend performance.
Janine noted, “Telstra looks set to test $5.50–$6 over the medium term.” Although patience may be required after recent gains, Telstra’s profile positions it as a reliable hedge within a defensive portfolio.
Stock 7: Wesfarmers (ASX: WES)
Wesfarmers’ retail diversification, from Bunnings to Kmart, makes it a dynamic business across multiple economic cycles.
Currently retracing from recent highs, both analysts agreed the stock could soon represent a compelling opportunity. “While it’s under pressure short-term, Wesfarmers’ quality assets position it well for the next rebound,” Janine explained.
Stock 8: Brambles (ASX: BXB)
Brambles, provider of global logistics and pallet pooling, has historically maintained upward momentum.
However, after reaching new highs, it’s now pausing near $22. Janine and Zoran both see potential for a drop toward $20 before resuming its uptrend. The long-term chart suggests periods of consistent growth followed by consolidation, ideal for savvy traders who understand timing.
Bonus Pick: FDR and West African Resources
In viewer Q&A, two additional stocks gained attention:
- FDR: While showing higher lows and strong structure, Janine cautioned that volatility and gaps demand strict risk management rules.
- West African Resources (ASX: WAF): Labeled as the “hot stock of the week,” Zoran identified potential for upside continuation given strong performance in the gold sector.
For traders exploring commodities, WAF ties in well with gold’s bullish momentum, a key theme discussed in the team’s Hot Stock Tips videos.
The RBA, Oil Prices, and Inflation Playbook
Australia’s Reserve Bank recently lifted interest rates by 0.25%, its latest move in the ongoing battle against inflation. Analysts expect at least one more hike before the year’s end.
Janine explained, “Prices for oil surged over 40% recently, driving inflation higher. But what investors often don’t realise is that they can actually trade these moves through ETFs or energy-sector stocks like Woodside or Santos.”
Learning how price action, demand, and inflation trends connect to your portfolio is essential which is something covered extensively in Wealth Within’s Diploma of Share Trading and Investment program for intermediate traders and investors.
Lessons for Long-Term Investors
Every major discussion on the show circled back to one golden rule of trading: discipline through education. Both Janine and Zoran reiterated that investors who rely on emotion or “hope trades” inevitably get caught holding stocks during deep drawdowns.
The key? A structured approach. Learn when to buy, when to sell, and how to identify high-probability setups.
Wealth Within’s Short Course in Share Trading and Advanced stock trading course teach investors how to apply these insights effectively, especially when volatility makes markets unpredictable.
Building Confidence for Future Cycles
Every recession creates opportunities for the well-prepared. As Dale Gillham often reminds students, “Markets shift, but disciplined investors profit in all conditions.”
If you’re just starting out, the Stock market for beginners guide is an excellent place to learn the basics.
Wealth Within’s structured Share trading education empowers traders to act decisively with confidence, using time-tested strategies taught by professionals with decades of industry experience.
To understand how Wealth Within continues to transform investors’ lives, learn more About Wealth Within and their mission to educate Australians to achieve financial independence.
Final Thoughts: Plan, Don’t Panic
Markets change, inflation rises, and recessions come and go but knowledge and discipline remain constant. The key to building a recession-proof portfolio lies not in reacting to fear but in planning ahead and upgrading your trading skills.
As the team at Wealth Within demonstrated, stocks like Woolworths, APA, and Telstra continue to offer stability, while opportunities in healthcare, infrastructure, and materials may deliver growth for years to come.
If you want to learn from the experts at Wealth Within and trade confidently no matter what the economy brings, now is the best time to take action. Explore our range of courses and start building your profitable, recession-ready portfolio today.
