Yes & no actually. Putting aside the fact that I absolutely hate the term ‘recession proof’ for a moment. I simply mean that a lot of these stocks (not all) have benefited immensely from a period of economic fairytale. There have been very few periods in time where we have had lower inflation, low interest rates & high employment rates - that is not likely to persist over the long term & most economists would agree with that. This has essentially created the ‘strong consumer’ that many governments around the world talk about - my general feelings are that this particular group of stocks have benefited immensely from this.
Assuming this doesn’t continue, I think some of these stocks are likely to be hard hit as wage growth slows and possibly even declines in real terms (accounting for inflation).
All of that being said I still think the strategy has merit. Targeting disposable income & secular growth trends are typically strong strategies and from an initial glance most of these companies (Target & Etsy aside) have large margins that they can play with to retain-gain market share.