After nine consecutive months of interest rate rises, evidence is showing that consumer spending is only just starting to wane.
So as we stare down the barrel of a major economic slowdown in 2023, which might be the ASX shares best placed to survive — or even thrive?
Some experts this week named two stocks to buy that might just fit the bill:
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'Well managed' business to recover earnings
Seneca investment advisor Tony Langford likes what Credit Corp Group Limited (ASX: CCP) brings to the table in a faltering economy.
"The company buys debt ledgers and operates in Australia, New Zealand and the United States," Langford told The Bull.
"It collects outstanding debts from consumers."
The Credit Corp share price is down 36.3% over the past 12 months.
Langford acknowledged that the last financial results were a mixed bag.
"The company's consumer loan book grew by 32% to $331 million in the first half of fiscal year 2023," he said.
"However, first half net profit after tax of $31.8 million was down 30% on the prior corresponding period."
Credit Corp, however, is a "well managed" business, and Langford has faith in its upwards trajectory.
"The company expects earnings to recover in the second half and full year net profit after tax guidance remains intact."
Cheers to a 'strong' business with 'defensive qualities'
Sequoia Wealth Management senior investment manager Peter Day favours the idea of a drink as the economy stumbles.
"Endeavour Group Ltd (ASX: EDV) operates liquor outlets, hotels and gaming facilities," he said.
"Endeavour offers strong businesses with defensive qualities."
The share price is now more than 15% lower than the last reporting season in August.
The Endeavour business, especially the hospitality side, was suppressed over the 2021/22 financial year, as various states endured anti-pandemic lockdowns.
But that makes it a strong growth contender for the current period.
"We expect a strong recovery in the hotels division in the first half of fiscal year 2023," said Day.
"Expect investment opportunities to emerge going forward. We retain our positive recommendation."
Day's peers are somewhat split on Endeavour shares.
According to CMC Markets, six out of 11 analysts rate it as a buy, while three recommend a strong sell.
