How Blue-Chip Stocks Beat Small Caps During Recessions

By Drift Striker · March 2, 2026

The conventional wisdom among retail investors holds that large-cap blue-chip stocks are the safe haven during economic downturns. That’s largely true—but the reality is more nuanced than most investment guides admit. Blue-chip stocks do tend to outperform small-cap equities during recessions, but the margin of outperformance varies dramatically depending on the specific economic contraction, its […]