Businesses that just keep going and going and going

[Joan.of.the.Arch]

I wonder what kind of businesses you think are nearly immune to the ranges and sometimes ravages of the economy. My nomination is:

LIQUOR STORE

[Caoineag]

I vote for grocery store, sure it can have issues with competition but people always have to eat.

[sweeps]

Casinos
Escort Services
Tobacco Companies
Churches

[cptacek]

tobacco, liquor, beer, pop - I think these things aren't usually hurt by a bad economy...maybe the liquor and beer are helped by it!

[InDebtInDC]

I believe the term is cyclical vs. non-cyclical industries. Cyclical industries experience profits in correlation with the economy. Non-cyclical industries experience profits regardless of the economy.

You can read up on those topics for for information. Usually non-cyclical industries comprise food, energy, and non-durable household goods.

A third type of industries is called counter-cyclical. These industries experience growth when the economy is not doing well. Things like inferior substitute goods fall into this category.

A substitute to non-cyclical holdings per se would be a mix of cyclical and counter-cyclical holdings, and switching the concentration of your portfolio based on how the economy is doing. That way, you in effect create a non-cyclical portfolio. The challenge will be picking the right ones at the right time.


My pick: electric power. Power is affected by usage and weather more than anything else, and usage is not highly correlated to the economy.

[aurielle]

Funeral Homes

[sweeps]

Funeral Homes

Ding ding ding, we have a winner.

[FrugalFish]

Yep, I was going to say undertakers/morticians. Long known as one of the most recession proof industries. I come from a long line of undertakers and my G-G-Grandfather was such during the depression. They survived quite well and always had plenty to eat as he was very often paid in chickens and pies...

[simpleyme]

during the great depression my husbands grandfather owned a meat shop we still drive past the farm he was considering buying for 10K cash during the depression ,he chose not to buy it
everyone in the family was in awe that the farm ever would have sold for 10K I told them I thought the real story is that grandad had an extra 10K during the great depression ;-)




edited to add missing letters

[MonkeyMama]

Accounting

If nothing else the IRS is still going to be around in good and bad.

Living in the tech area when all our friends and relatives (even my hubby) were worrying about layoffs I have to say it has never been a concern of mine. Even with many tech clients - if anything else they needed more of our help during that time.

You could be pigeonholed in a cyclical industry, and if you specialize in one area you open up to risk. But as far as individual taxes and generally complying with government, the jobs will always be there.

[jIM_Ohio]

health care- people don't want to die.

toy companies (people will stop buying clothes before they stop buying their kids toys).

lingerie companies.

[Hedy]

Plumbers. People will always need to use the facilities and shower.

[loanstar]

Casinos
Escort Services
Tobacco Companies
Churches

the tobacco industry is in decline, casinos, if people have little excess money to spend, they wouldn't gamble. groceries on the other hand, no matter how bad the economy is, people will always need food.

[Ima saver]

I will vote for grocery and liquor stores!

[sweeps]

the tobacco industry is in decline, casinos, if people have little excess money to spend, they wouldn't gamble. groceries on the other hand, no matter how bad the economy is, people will always need food.

The tobacco industry may be in decline in the U.S., but globally it's doing great. Smokers smoke regardless of how the economy is doing, which is what the original question is about.

You underestimate gamblers. Casinos do well in any type of economy. Many of their faithful customers are old people on fixed incomes or high rollers who don't care what the economy is doing. Also in tough times some people gamble more out of desparation.

By the way, while grocery stores are largely recession proof, they're in pretty bad shape themselves. The Walmarts and the Targets out there are destroying them.