Which ASX All Ords shares avoided a sell-off during the last recession?

These All Ords shares were investors' best friends last time we had a recession.

Key points
  • 2022 has been a rough year for investors 
  • There's little doubt many are worried about another recession coming 
  • So let's check out some shares that thrived last time the economy shrank 

It's only been two and a half years since Australia ensured its last recession – the short-lived COVID-induced economic shutdown of 2020. As it happens that was the first technical recession the Australian economy suffered in almost three decades.

A recession is technically defined as two consecutive quarters of negative economic growth. Thus, the Australian economy was officially in recession from 1 January until 30 June 2020, since Australia's gross domestic product (GDP) declined in both quarters.

Investors are clearly worried that we might be facing another economic contraction. Rising interest rates, inflation and an uncertain global outlook are certainly risk factors here. And there's no doubt investors are more than a little nervous today.

Whether or not another recession is coming is impossible to predict accurately. However, it's still a good opportunity today to examine which ASX All Ordinaries Index (ASX: XAO) shares escaped the recession last time around.

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Image source: Getty Images

These All Ords shares dodged the 2020 recession

Vulcan Energy Resources Ltd (ASX: VUL)

The first All Ords share worth checking out is Vulcan energy. This lithium exploration company has a rare lithium opportunity in Europe. Together with its plans to maintain a carbon-free footprint, it has many investors excited about its future.

Vulcan shares conspicuously avoided the 2020 recession. In fact, the company rose from 16 cents a share in early January to a whopping 56 cents by the end of June – a gain worth 250%.

Temple & Webster Group Ltd (ASX: TPW)

All Ords online furniture retailer Temple & Webster was one of the more high-profile 'winners' from the COVID period. As Australians were confined to their homes in 2020, many flocked to this company's online-only business model to purchase furniture and other homely comforts.

We can see this reflected in Temple & Webster's share price. This company started 2020 at $2.75 a share. But by the time the recession officially ended, Temple & Webster was trading at a far more impressive $6.31. That's an improvement of almost 130%.

A2 Milk Company Ltd (ASX: A2M)

A2 Milk shares may have had their fair share of woes recently. But if we backtrack to 2020, we find a company that weathered the recession exceptionally well. No doubt A2 Milk's strong brand and consumer staples nature helped investors see through the risks of that fraught period.

This former market darling began the 2020s at $14.25 a share. But six months later, the company came out of the COVID recession at a much-improved $18.66. That's a gain worth just over 76%.

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended A2 Milk and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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