Stock picking has always been tricky, especially in a challenging environment of elevated inflation and rising interest rates, which has been the case recently and will continue into 2003.

Inflation and rising interest rates could depress consumer and business spending and push the U.S. and global economy into a recession in 2023. Moreover, it could hurt corporate earnings and equity prices, making the buying of stocks like "trying to catch a falling knife."

Still, a recession isn't a foregone conclusion, and there are a few things that could save the U.S. and the world economy from it.

Moreover, investors can make money in both bull and bear markets, provided that they know how recessions affect different sectors of the economy. For instance, recessions devastate cyclical sectors, like consumer discretionaries and housing, but they have little impact on defensive sectors like consumer staples, pharmaceuticals, and property and causality insurance.

That's why some investment experts like defensive stocks. Robert R. Johnson, a finance professor at Creighton University, is one of them.

He thinks Berkshire Hathaway (BRKB) is a prudent choice for risk-averse investors.

"Once considered a bet on Warren Buffett's stock-picking abilities, it is now more aptly characterized as a portfolio of great operating companies with a wide diversification of cash flows," Johnson told International Business Times. "Berkshire has a long-term orientation with unparalleled management that is exceptionally patient and shareholder-centered."

Other investment experts are looking to beat up technology stocks, as markets have already discounted the prospect of a mild recession, and valuations have reached reasonable levels.

Donny Gamble, the CEO of Retirementinvestments, likes Tesla.

"With the recent dips from the Twitter FUD opened up a buying opportunity of a lifetime," he told IBT. "Tesla will continue its market dominance and pricing power over their competitors."

He likes Google, too. "YouTube will continue to grow with its new inked deal with the NFL," he explained. "The fundamentals will remain strong, and Google will have its best growth year ever."

Advanced Micro Devices and Amazon are on his radar, too, for similar reasons.

Randy Baron, lead portfolio manager of Pinnacle Associates, is looking to smaller, less famous companies like Amyris, synthetic biology leader Amyris, which was disproportionately punished in the recent NASDAQ sell-off.

"The company is the top name in a burgeoning space that we view as equivalent to the internet in the early 1990s," Baron told IBT. "Amyris is on the verge of selling two of its molecules for $350 million. [The company] has yet another sale set up for early 2023, and should be net income positive by the fourth quarter of 2023."

Another biotech on Baron's list is Renalytix AI, which has a solution for obesity.

"By 2030, 30% of Americans will be morbidly obese – meaning 100 pounds (or more) overweight," he said. "Solving for this problem, including the dialysis that follows from kidney failure, costs Medicare almost a quarter of its annual budget."

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