With interest rates rising rapidly, there are concerns that a recession is coming.
In light of this, it could be worth ensuring that your portfolio is prepared for an economic downturn by fortifying it with a few resilient ASX shares.
But which ASX shares? Three to consider are listed below:
Coles Group Ltd (ASX: COL)
You only need to look at the performance of this supermarket giant during the pandemic to see how resilient it is. In addition, Coles has positive exposure to inflation, which means its sales are actually boosted in the current environment. It is partly for this reason that analysts at Citi are positive on this ASX share and are forecasting solid earnings and dividend growth through to at least FY 2025.
Citi has a buy rating and a $20.20 target on its shares.
Goodman Group (ASX: GMG)
Another ASX share to consider fortifying your portfolio with is Goodman. Although the property market is a tricky place to be right now, that's not the case in the industrial sector, where demand remains insatiable. This has underpinned further solid growth again in FY 2023 and has analysts at Citi expecting more of the same in the years that follow. In fact, Citi recently said that it sees "potential for GMG to generate consistent high-single to low-double-digit earnings growth over the medium term."
Citi has a buy rating and a $24.30 price target on Goodman's shares.
Telstra Group Ltd (ASX: TLS)
A final ASX share that could fortify your portfolio is Telstra. Australia's largest telco could be a solid performer during an economic downturn thanks to its defensive earnings. Few people would give up their phone or internet access even in hard times, which bodes well for Telstra. In addition, the recent introduction of inflation-linked pricing looks set to boost its top line and offset any cost increases.
Goldman Sachs is a big fan and has a buy rating and a $4.70 price target on its shares.