Cash On The Blog

Although it’s hard to think that there could be good investment news during a recession or depression, not all types of businesses perform poorly. History shows that there are businesses that maintain their profitability and others that actually thrive during difficult economic times. This article takes a look at the types of companies that are likely to survive or do well during the current economic downturn.

First, discount stores are likely to see an increase in patronage. The worse the economy gets, the less disposable income most households have. As more and more people are laid off from their jobs, and as unemployment rates increase, increasing numbers of people have no choice but to stretch their income and shop at discount stores. People who used to be able to afford shopping at higher-end malls, but whose income has decreased due to layoffs or cutbacks, are changing their buying patterns. So is the economy worsens, the bottom line for discount stores gets healthier, and profits increase.

Next, any industry that provides basic necessities for living will at least be able to continue relatively unchanged by the economic forces surrounding it. Industries like health care, pharmaceuticals, retail grocery stores and grocery wholesalers, waste management services, auto repair and maintenance services have relatively consistent demand regardless of the economy. People still need to eat, so they buy food at the grocery store. If someone in the family gets sick, they go to the doctor and get the prescription filled. If the car breaks down, it still needs to get repaired in order to take people to work or shopping or groceries.

Other areas which remain stable, unfortunately, are industries that cater to people with addictions. Cigarettes continue to sell. Alcohol continues to sell. People with these addictions will even forgo buying food in order to maintain their “habit”. That means tobacco and liquor manufacturers, wholesalers and retailers (like the corner convenience store) are likely to continue with business as usual.

Recycling-related industries are likely to see an upturn in business activity. People become more conscientious about saving and collecting plastic bottles, soda cans and paper, especially in communities that already have established programs that pay cash for these items.

Also secondhand stores and consignment stores for furniture and clothing may see an increase in business as people change their habits from buying everything “new” to replacing items that wear out with “gently used” versions. Online auction sites like eBay will likely see increased activity.

About the Author

Author and entrepreneur Bernz Jayma P. is the owner of a financial blog, dedicated to helping people expand their knowledge about their personal finances. Learn up to date investing strategies and retirement planning by visiting http://www.Invesmint.com.