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What are some of the recession-proof industries?

Investors tend to become nervous and begin to sell when markets are unstable. There is no effect on some industries, whereas other industries are extremely vulnerable to economical changes. In this article we are going to discuss about those industries which do not get affected by recession. The industries that are mentioned below are capable of surviving unstable, declining or a weak economy.

  1. Information Technology

In today’s world of technology, numerous opportunities are coming our way day by day. The Wall Street Journal had published a report stating that, during the recession years of the US, the IT sector was rapidly growing. With each passing day, we become increasingly dependent on our gadgets. It exercises control over our interactions, companies and so on. This industry is only going to grow in the coming years.

  1. Cosmetics

Our generation is extremely conscious about their external appearance. Everybody wants to look perfect while going out. It has made us feel more confident and good about ourselves, and that’s why cosmetics have acquired an important place in our lives. A depressed economy is not going to affect that. Cosmetic brands such as Coty Inc. and Estee Lauder Companies Inc. have proved that it’s possible for cosmetic industries to do well in during weak economic days. Some other powerful members include: Unilever and Procter & Gamble.

  1. Food and Beverages

Food is one among the basic necessities of life. No matter what the condition of the economy is, people need food. It is observed that the consumption of candies rose dramatically during the recession that took place recently. During recession, Americans opted for sugar to get relaxation and relief. According to a report published by The New York Times, the Cadbury witnessed an increased profit of about 30 per cent in 2008. Another wise and stable investment would be in grocery stores. Since people need food to survive, the grocery shop will never witness a setback.

  1. Pharmaceutical

Considering our lifestyle, physical and mental stress and sleep deprived bodies, we survive on medicines. No doubt people are become health conscious day by day and are progressing towards a healthy life, but there are patients out there who need a continuous flow of medication. For example, people having cancer, it is almost impossible for them to survive without medicines. The chances of survival become questionable if medicines are not supplied on time.

  1. Alcohol

Wine, beer and other alcoholic beverages are considered as high-margin items and the demand for these items is growing globally. Some of the most popular companies in this industry include Corona, Budweiser, Beck’s, Stella Artois and Hoegaarden. Though people cut costs on alcohol during the times of recession, buying more products which are less expensive makes the brand ultimately rich.

Bottom Line:

There is no 100% guarantee that investment on these industries would never let you see the downfall of your company, but we can assure you that investments made on these sectors will not let you experience a financial crisis during the times of recession.

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