Recessions or economic slowdowns can occur anytime without warning. It often forces investors to sell the stocks, and many suffer from losses. If you are an investor with an income source that depends on the market, you need to know about the key recession-proof industries to keep your income flowing. They are mentioned right here.
1.
Manufacturing of
Alcoholic Beverages
Distilled
beverages, wine, and beer are some of the most in-demand products with high
margins. So, they are somewhat recession-proof. A few names in this industry
you can trust are Diageo plc (DEO), Anheuser Busch InBev SA (BUD) and Companhia
de Bebidas das Americas (ABV).
2.
Consumer Staples
No matter what
is happening in the economy, everyone will still need specific household items
like soap, toothpaste, laundry detergent, toilet paper, etc. So, these products
will always be in demand. To make the most of this opportunity, consider buying
shares of big brands in the consumer staples industry like Unilever N.V. (U.N.),
Colgate-Palmolive Company (CL), and Proctor & Gamble Co (PG).
3.
Grocery Stores and
Discount Retailers
Grocery stores
or retail chains are also a good investment as people need to buy consumer
staples from somewhere. Some of the brands you can consider are Walmart Stores,
Inc. (WMT), Costco Wholesale Corporation (COST), and The Kroger Company (K.R.).
They usually collect hundreds of billions of dollars in revenue.
4.
Death and Funeral
Services
Deaths are
inevitable and happen during the recession as well. You can purchase shares of
companies like Carriage Services, Inc. (CSV) and Matthews International Corp.
(MATW) that profit by offering death-related services.
5.
Cosmetics
People always
like to look good. Hence, the demand for cosmetic products usually stays up,
even in a recession. Two brands we recommend are Coty Inc. (COTY) and Estee
Lauder Companies Inc. (E.L.). They do well in bad economic conditions and
thrive in normal economic scenarios.
6.
Health Services
People care for
their health and well-being during a recession too. They also get sick and have
babies no matter what the economy is like. So, you can invest in healthcare
companies when seeking stable investment opportunities.
7.
Social Work
Even if there is an economic downturn, the demand for social workers
doesn't go down. In fact, this demand often increases as financial troubles can
lead to increase stress, abuse, and even domestic violence.
8.
Financial Services and
Accounting
No matter the economic situation, people still need to pay taxes and
manage accounting-related tasks. Hence the demand for financial services and
accounting remains constant. So, this is a good industry to invest in.
9.
Education
The need for education remains constant even in times of recession. During
the COVID-19 crisis also, people sought educational opportunities online and
offline. Therefore, this industry will grow steadily no matter what the
situation is.
10.
Information Technology
We are all connected with technology these days. So, the demand for
information technology services is expected to be high in the future, even if
there is a recession.
Need more? Here is a 10 step guide to recession-proof your finances.
Also, here are a few tips on how to see a job during the recession.
Sources:
https://www.fullyprepped.ca/blog-posts/recession-proof-jobs
https://www.investopedia.com/articles/investing/100115/5-recession-resistant-industries.asp