We’ve all heard mutterings of industries that are “recession-proof”, but is it just a rumor with no merit? Let’s explore the industries and markets that have been able to thrive through historically difficult economies.
Essential Industries (Investopedia)
Food + Grocery
While this is a huge industry, grocers are a necessary part of our society. As we saw in 2020, stores were protected and even required to stay open. According to Investopedia: “Besides discount stores like Dollar Tree and Walmart, which are major grocers, several other companies that make or sell food also made the list. They include packaged food company General Mills, Inc., grocery store chain Kroger Co. (KR), and also restaurant chains McDonald’s Corp.”
As the market continues to become more internationalized, freight and logistics increase in importance. A few corporations that saw positive returns during the 2008 recession include:
Old Dominion Freight
Westinghouse Air Brake Technologies
C.H. Robinson Worldwide