‘Recession is inevitable’: Elon Musk now thinks there’s a greater than 50-50 chance that the economy will decline. Here are 3 simple ways to protect your money

The U.S. economy made a strong recovery from the COVID-19 pandemic. But according to Tesla CEO and billionaire Elon Musk, the good times might be over pretty soon.

“I think a recession is inevitable at some point,” he said at the Qatar Economic Forum on Tuesday.

“As to whether there is a recession in the near term, that is more likely than not. It is not a certainty, but it appears more likely than not.”

This isn’t Musk’s first economic warning.

In an email to Tesla executives earlier this month, Musk said that he has a “super bad feeling” about the state of the economy and wants to cut 10% of the company’s workforce.

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We are in a bear market already. If the economy falls into a recession, many stocks could see further downside.

The good news? Some sectors are more recession-resistant than others. Here’s a look at three of them.

Consumer Staples

Consumer staples are essential products such as food and drinks, household goods, and hygiene products.

We need these things regardless of how the economy is doing.

If a recession hits the U.S. economy, many companies will likely see their business deteriorate. However, we’ll probably still see Quaker Oats and Tropicana orange juice — made by PepsiCo (PEP) — on families’ breakfast tables. Meanwhile, Tide and Bounty — well-known brands from Procter & Gamble (PG) — will likely remain on lists coast to coast.