Investing During a Recession - Which Stocks Will Thrive?

Although it's hard to think that there could be goodof the economy. People still need to eat, so they buy
investment news during a recession or depression,food at the grocery store. If someone in the family
not all types of businesses perform poorly. Historygets sick, they go to the doctor and get the
shows that there are businesses that maintain theirprescription filled. If the car breaks down, it still needs
profitability and others that actually thrive duringto get repaired in order to take people to work or
difficult economic times. This article takes a look atshopping or groceries.
the types of companies that are likely to survive orOther areas which remain stable, unfortunately, are
do well during the current economic downturn.industries that cater to people with addictions.
First, discount stores are likely to see an increase inCigarettes continue to sell. Alcohol continues to sell.
patronage. The worse the economy gets, the lessPeople with these addictions will even forgo buying
disposable income most households have. As morefood in order to maintain their "habit". That means
and more people are laid off from their jobs, and astobacco and liquor manufacturers, wholesalers and
unemployment rates increase, increasing numbers ofretailers (like the corner convenience store) are likely
people have no choice but to stretch their incometo continue with business as usual.
and shop at discount stores. People who used to beRecycling-related industries are likely to see an upturn
able to afford shopping at higher-end malls, butin business activity. People become more
whose income has decreased due to layoffs orconscientious about saving and collecting plastic
cutbacks, are changing their buying patterns. So isbottles, soda cans and paper, especially in
the economy worsens, the bottom line for discountcommunities that already have established programs
stores gets healthier, and profits increase.that pay cash for these items.
Next, any industry that provides basic necessities forAlso secondhand stores and consignment stores for
living will at least be able to continue relativelyfurniture and clothing may see an increase in business
unchanged by the economic forces surrounding it.as people change their habits from buying everything
Industries like health care, pharmaceuticals, retail"new" to replacing items that wear out with "gently
grocery stores and grocery wholesalers, wasteused" versions. Online auction sites like eBay will likely
management services, auto repair and maintenancesee increased activity.
services have relatively consistent demand regardless