Goldman Sachs is expecting further market weakness this year, and macro strategist Vickie Chang has cautioned investors that more stock market declines could be in store. According Chang, the S&P 500 Index ($SPX) might find an even lower bottom. She specifically mentioned that in situations like the current tariff-driven “shock,” markets typically don’t reach their trough until economic growth itself bottoms out.

According to Goldman Sachs, there is still a 45% chance of a recession. Here are some stocks to rotate into if you want to soften the blow if a recession does materialize.

Stock #1: Waste Management (WM)

Waste Management (WM) is practically a utility company due to how essential its services are. The company does exactly what the name suggests, and it has delivered very consistent gains of 375% over the past decade.

Waste Management is likely to stay detached from tariff-related risks and even a recession. Consumers still need their waste taken care of, no matter the economic environment, and this isn’t a big part of people’s budgets, so most people are unlikely to avoid paying trash fees. 

This “must-have” status gives WM annuity-like revenue streams. Almost all of its revenues come from the United States, so it is one of the least sensitive companies to tariff-related risks in the industrials sector.

Stock #2: McDonald’s (MCD)

McDonald’s (MCD) should be near the top of your list if you are considering buying recession-resistant stocks. The company thrived during the Great Recession, and I expect something similar to happen in any current scenario since MCD shares have consistently managed to dodge downturns. 

MCD stock did decline in 2020, but that was primarily due to the uncertainty associated with pandemic unknowns. Investors also largely punished restaurant stocks, so McDonald’s got caught up in the onslaught.

In a more traditional period of turbulence like an economic recession, experts expect McDonald’s to hold up. Its shares could even benefit as consumers turn to its discounted fast-food options vs. higher-priced restarant fare. 

The dividend yield here is at 2.24%, giving investors another reason to hold the stock.

Stock #3: American Water Works (AWK)

American Water Works (AWK) is the largest publicly traded water and wastewater utility in the U.S. Utility companies are among the least affected by tariffs, as these businesses are almost entirely domestic. They are also very recession-resistant.

Water is a basic necessity, and demand here doesn’t fall when the economy slows. American Water Works provides water services to 14 million people across 24 states, so revenues here are largely immune to economic cycles. The majority of its revenue comes from regulated businesses, so cash flows are very predictable.

Q1 2025 revenue grew nearly 13%, and net income rose 10.81%. AWK stock also comes with a 2.26% dividend yield to sweeten the deal.