Counter-Cyclical Stock

See: Business Cycle.

Whiskey does well in any economy. But some stocks perform well when the economy is doing great (consumer cyclicals)...and some stocks do well when the economy is losing its wheels, like a wagon being driven by a drunk cowboy who has a penchant for falling asleep at the, er...reins.

Stocks that are “negatively correlated” to broader economic performance are counter-cyclical stocks. These are stocks that can outperform in economic downturns, and even while the nation is experiencing a recession.

Fast food companies, discount retailers, and auto-part stores for used cars all may be solid investments when times are tough.