The dollar store sector will likely continue to benefit from low price points and locations that are convenient for cash-tight shoppers, says Moody’s Investors Services.ĭollar Tree pretty much has the market to itself now, with the failed exit of Wal-Mart Express, Wal-Mart's attempt to enter the smaller-scale dollar store sector that crashed due to issues ranging from product mix and pricing to supply chain logistics. Thrift shops and resale stores also drew in lots of new customers during the recession.Īccording to America’s Research Group, 20% of people in 2012 said they have shopped at thrift stores, up from 14% in 2008. But when times are bad, retailers like Wal-Mart excel at providing cheap goods to customers.ĭollar stores and thrift stores became Wall Street darlings during the recession, as Dollar General (NYSE: DG), Family Dollar, and Dollar Tree (NASDAQ: DLTR) added thousands of stores from 2008 through 2012. It often suffers in good times, as people flush with cash tend to buy higher-quality goods at competing outlets. While every other large retailer suffered losses in 2009, Wal-Mart (NYSE: WMT) reported a 5.1% increase in profits, more than doubling Wall Street’s predictions of 2.4%. Jittery middle-class shoppers, some still worried about the onset of another recession, are flocking to the small-format bargain stores and discount retailers, which have survived and flourished since the Great Repression.Īll of this is owed to shoppers switching to a more frugal mindset. Low prices always trump politics and diversified views on discount retailers and dollar stores during a recession. The most popular companies in this sector are those that offer online dating to their clients via an app or website. To date, this industry has already hit over $650 million in sales.Īnd the best part is, there is no need to ever leave your home. Recession or no, people are always searching for companionship either for dating or for marriage. There are many others similar to Pfizer in this regard.Īnother interpersonal and sex-driven area that performs surprising well during a recession is online dating. It has survived and thrived throughout some of the most difficult times in history, making it a perfect stock to buy and never sell. Pfizer has a 167-year long history, which signifies that it remains there for its investors through the good and bad times. The stock carries an outstanding 4.3% yield and trades at 8.4 times forward earnings. It also yields birth control pills such as Lybrel and Loestrin. One example is Pfizer Incorporated (NYSE: PFE), which makes Depo-Provera, the contraception injection that is administered every three months. However, more than half of birth control stocks pay dividends. Unsurprisingly, that also triggered a significant increase in the use of birth control, and the companies that market all forms of contraception benefited greatly.īirth control makes up only a small portion of the businesses in the pharmaceutical industry. States that economically tanked in 20 also had the lowest birth rates in 20. But to avoid any unplanned expenses delivered in about nine months, contraceptive sales skyrocketed 10% during the first two months of the Great Recession.Ī study by Pew Research shows women are less likely to have children when the economy is bad. The bedroom makes an excellent escape during turbulent economic times. The desire for comfort doesn’t subside when money gets tight - it just scales down. People tend to patronize the sin industries more so during a recession. I’m referring to what are commonly known as the "sin industries." Some of the most economically resilient companies are usually the more unusual or least obvious in nature.Ĭontraceptives and Online Dating Services The key is finding a company or industry that shows long-term growth potential, is immune to outsourcing, and isn’t tied to the fickle tastes of consumers. The best investors can hope for are recession-resistant businesses, meaning ones with a better chance than most of riding out the storm. Many economists are now saying that there is no longer such thing as recession-proof industries. The global financial crisis of 2007–2009 practically rewrote the rules about recessions. Recession-proof businesses are traditionally defined as industries that thrive during rotten economic trends, or at least emerge pretty much unscathed.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |