(a) Look for businesses which are leader in their segment and are going strong. Also analyse whether these companies will be able to maintain or grow their revenues, incomes and cash flows even in recession period.
(b) Look for those companies which has the potential to control vital hard assets or commodities which are likely to increase value in times of inflation and they are able to control prices of such commodities as they are the leader in the segment with no competition.
(c) Look for the companies which are dealing in a non-USD currency and the best is one which is tied to hard assets and commodities.
(d) Look for past history of stocks which have provided high dividend yields more than 7%.
2. Thus if one is able to keep watch on the listed four criterion one will be able to sail throught the stock market with ease as one will be playing in stock market companies which are recession proof.
