7 Crisis-Proof Investments: What Assets Should You Own When Everything Falls Apart?

In today’s uncertain economic landscape, knowing what assets to hold during a crisis isn’t just smart—it’s essential for financial survival. I’ve researched extensively to bring you the most effective crisis investments that can weather economic storms.

Why Crisis Investing Matters Now More Than Ever

Let’s face it—market downturns are inevitable. They’re a normal part of the economic cycle, but that doesn’t make them any easier to endure. When things get rocky, our instinct often pushes us toward rash decisions like selling investments and rushing to cash. But this emotional response frequently leads to the worst possible outcome: bailing out of assets just as recovery begins.

According to Fidelity Investments research from March 2025, economic downturns don’t always coincide with market declines. In fact, in five of the eleven recessions since 1950, the stock market actually showed positive returns! This challenges the common assumption that every recession leads to a deep market correction.

So what should you own when crisis hits? I’ve analyzed the data and identified seven crisis-resistant assets that can help protect your wealth

The 7 Best Assets to Own During Economic Crisis

1. Gold: The Classic Crisis Hedge

Gold has proven itself repeatedly as a reliable crisis investment This year alone, gold prices have surged more than 30%, significantly outpacing the S&P 500’s modest 8% gain

Tom Bruce, macro investment strategist at Tanglewood Total Wealth Management, notes “Gold remains one of the most reliable long-term hedges against geopolitical and disaster risks” This isn’t just speculation—central banks worldwide have been accumulating gold at historic rates, with a recent World Gold Council survey showing 43% plan to increase reserves, up from 29% last year

Why does gold perform well in crises?

• It maintains value when currencies falter
• It’s universally recognized as valuable
• It operates outside the digital financial system
• It has physical form that can’t be “deleted” or hacked

2. U.S. Treasury Bonds: The Financial Safety Belt

During periods of uncertainty, Treasury bonds become extremely attractive. Jason Brown, stock market expert at TheBrownReport.com, describes them perfectly: “U.S. Treasurys are like the seatbelt of your investment strategy. Maybe not flashy, but they can save you when things get rough.”

What makes Treasuries so crisis-resistant?

• Backed by the “full faith and credit” of the U.S. government
• Capital tends to flow into bonds during recessions
• They provide stable, predictable income
• They typically move inversely to stocks, providing valuable diversification

3. Dividend-Paying Stocks: Income When You Need It Most

When the broader market struggles, dividend stocks can be your financial lifeline. Companies with long histories of paying dividends through previous downturns demonstrate financial strength and reliability.

“You’re not just hoping the stock goes up; you’re actually getting paid to wait,” explains Brown. Dividend aristocrats—companies that have increased dividends for 25+ consecutive years—often show remarkable resilience during market turbulence.

Benefits of dividend stocks in crisis:

• Provide regular income regardless of market conditions
• Typically represent stable businesses with strong cash flow
• Have historically shown less volatility than non-dividend stocks
• Offer potential for both income AND appreciation

4. Defensive Sector ETFs: Protection Through Essentials

When consumers tighten their belts, they cut discretionary spending first while maintaining essential purchases. This reality makes defensive sector ETFs particularly valuable during economic crises.

“Rotating to staples can be a good strategy since, even in tough times, people are going to prioritize paying the electric, gas and health insurance bills,” says Nik Agharkar of Crowne Point Tax & Wealth Counsel.

Strong defensive sector ETFs include:

• Utilities Select Sector SPDR Fund (XLU)
• Health Care Select Sector SPDR Fund (XLV)
• Consumer Staples Select Sector SPDR Fund (XLP)

These funds track companies providing the necessities people can’t eliminate from their budgets, even during severe economic distress.

5. High-Quality Corporate Bonds: Stability With Yield

High-quality corporate bonds from financially strong companies offer an excellent balance of safety and yield during turbulent times. These bonds are issued by corporations with excellent credit ratings, indicating minimal default risk.

Louis Green, an advisor at Savvy Advisors, explains: “As long as the underlying fundamentals of the company are solid, then a high-quality corporate bond should provide consistent income for investors.”

These bonds typically have low correlation to equities during recessions, making them excellent portfolio diversifiers. They won’t deliver spectacular returns, but they’ll provide reliable income when other investments might be faltering.

6. Real Estate Investment Trusts (REITs): Essential Properties

REITs focused on essential properties can provide stability during economic storms. Even in recessions, people need housing, healthcare facilities remain necessary, and supply chains continue requiring warehouse space.

While not all REITs perform well during downturns (luxury hotels and high-end retail can suffer), those focused on necessities often maintain their value and continue generating income.

However, REITs come with considerations. “While these vehicles can provide stable returns, they can also come with high fees and tax implications that most do not consider,” warns Agharkar. Always review the prospectus for hidden costs and understand the tax implications before investing.

7. Cash or Cash Equivalents: Dry Powder

Having some portion of your portfolio in cash or cash equivalents provides both protection and opportunity during crisis periods. Cash won’t decline in nominal value, and more importantly, it gives you the ability to purchase other assets at discount prices when opportunities arise.

However, cash requires discipline. Many investors who moved entirely to cash during the 2008-2009 financial crisis missed the subsequent decade-long bull market because everything seemed “too expensive” compared to crisis lows.

The key, according to Agharkar, is to “commit to a strategy that gets you back into the market once certain parameters have been met.” This might include specific market valuation metrics or technical indicators that signal when to redeploy your cash reserves.

Building Your Crisis-Resistant Portfolio

The most effective approach isn’t choosing just one “best” asset for crisis periods—it’s constructing a portfolio that includes several crisis-resistant elements. Here’s a simplified approach:

Your specific allocations should vary based on your age, risk tolerance, and proximity to needing the funds. Younger investors might weight more heavily toward dividend stocks and defensive ETFs, while those near retirement might increase allocations to Treasuries and cash.

Mistakes to Avoid During Crisis Periods

I’ve seen too many investors make these critical mistakes during market turbulence:

1. Panic selling at market bottoms – Emotional decisions rarely lead to good investment outcomes
2. Going 100% to cash without a reentry plan – Missing the recovery can be more costly than the decline
3. Attempting to time the market perfectly – Even professionals struggle with this
4. Focusing solely on capital preservation – This often leads to inflation eroding your purchasing power
5. Ignoring your time horizon – Longer investment timelines allow for more recovery opportunity

Final Thoughts

While no investment is completely immune to all crisis scenarios, the seven assets we’ve discussed provide meaningful protection against different types of economic storms. By thoughtfully combining these elements, you can build a portfolio that not only survives but potentially thrives during difficult economic periods.

Remember, the goal isn’t to completely avoid all market fluctuations—that’s impossible. Instead, focus on creating a portfolio that allows you to sleep at night during volatile periods while still participating in long-term growth.

I’ve personally found that maintaining a disciplined approach focused on these crisis-resistant assets has helped me navigate several market downturns without making panic-driven mistakes. By understanding what assets perform best during different types of crises, you can approach uncertain times with confidence rather than fear.

What crisis-resistant assets have worked best in your experience? I’d love to hear your thoughts in the comments below!

Investing $1,000 a month for 30 years could grow to over $1.4 million with an 8.27% annual return, or around $800,000 with a 5% return. Your total contribution over 30 years would be $360,000 ($1,000 x 12 months x 30 years), and the remaining value would be from compound earnings.