Which Industries Thrive in Recession?

Recession effect

When you hear the word recession, it is almost impossible for any one of us to think anything positive. Recession means bad for us. The main point in the recession is that economic indicators like GDP, employment, income etc. will be on the downward path, at least for 6 months. The main drawback during recession is the aspect of job. Job security will be like a line drawn on the water.  

The main priority during these bad times would be finding job that is the least affected by the recession. During recession, every rule that we had followed so far will be insolvent. Most economists believe that there cannot be an industry that could saved from the recession, as everything and everyone will be affected by it. Companies that could withstand recession and resist it will bear many fruits.

There are certain industries that are guaranteed to resist the black hands of recession. These companies have the belief and strength to immerse them into the crumbling world of economics and come back with profits and returns.

The sweets and candy industry is one place you can guarantee to stay rooted without the threat of unemployment looming over your head. Everybody enjoys sweets and everybody will cross the street to lavish themselves or for their kids. It is said that candy consumption went over the roof in US during the Great Recession.  Industries like repossessions and removals act as the caretaker and undertaker for repossessing vehicles and other properties of people who fall prey to the economic imbalance or the mighty recession. Junk removal and accumulation has been profitable for a long time. The situation is not different even when the recession strikes. During the recession, some people who had debts with their respective banks tend to runaway leaving their earthly possessions. This in turn will reach the hands of the junk removal people.

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Education is one key area that is a really profitable business no matter what the economic or social situation is. Government teachers (employees) are always considered to be the most fortunate in the working sector. Job security is a settle issue for them. No government in their right mind would disperse the education sector. Schools, colleges and kindergarten are all in need of teacher and at times there is a dearth of available teachers too. Teaching is a profitable one that won’t wither away in the recession.

During recession, we believe that most people will stay back from certain unnecessary expenditures like smoking and drinking. However, the actual fact is that those section of people won’t let go of their vices, but rather cut down the expenses instead of losing it completely. They will enjoy smoking and drinking but in a reduced amount or level. They might even lose their stubbornness in using only branded stuff. So the sales of wines, beers and cigarettes might be on the upscale rather than going down with the economy.

Thrift stores will also bring in huge profits during the time of recession. The discount sale option that comes up in shops will tempt the regular customers as well as new ones as they don’t want to let of the opportunity and throngs the shop. The branded items being made available at a really bargaining price will only help the business to increase their profits rather than diminishing. Thus the thrift stores thrive during the time of recession.

The key point in these companies is that they all will thrive even after the recession. The sales that they had during the time of recession will be almost the same during the revival time. It is clearly the discretion of the investor to decide whether he/she wants to invest in such stores.

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Mark Holland

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