Recession-Proof Industries to Keep Your Income Flowing

Recessions or economic slowdowns can occur anytime without warning. It often forces investors to sell the stocks, and many suffer from losses. If you are an investor with an income source that depends on the market, you need to know about the key recession-proof industries to keep your income flowing. They are mentioned right here.

1.       Manufacturing of Alcoholic Beverages

Distilled beverages, wine, and beer are some of the most in-demand products with high margins. So, they are somewhat recession-proof. A few names in this industry you can trust are Diageo plc (DEO), Anheuser Busch InBev SA (BUD) and Companhia de Bebidas das Americas (ABV).

2.       Consumer Staples

No matter what is happening in the economy, everyone will still need specific household items like soap, toothpaste, laundry detergent, toilet paper, etc. So, these products will always be in demand. To make the most of this opportunity, consider buying shares of big brands in the consumer staples industry like Unilever N.V. (U.N.), Colgate-Palmolive Company (CL), and Proctor & Gamble Co (PG).

3.       Grocery Stores and Discount Retailers

Grocery stores or retail chains are also a good investment as people need to buy consumer staples from somewhere. Some of the brands you can consider are Walmart Stores, Inc. (WMT), Costco Wholesale Corporation (COST), and The Kroger Company (K.R.). They usually collect hundreds of billions of dollars in revenue.

4.       Death and Funeral Services

Deaths are inevitable and happen during the recession as well. You can purchase shares of companies like Carriage Services, Inc. (CSV) and Matthews International Corp. (MATW) that profit by offering death-related services.

5.       Cosmetics

People always like to look good. Hence, the demand for cosmetic products usually stays up, even in a recession. Two brands we recommend are Coty Inc. (COTY) and Estee Lauder Companies Inc. (E.L.). They do well in bad economic conditions and thrive in normal economic scenarios.

6.       Health Services

People care for their health and well-being during a recession too. They also get sick and have babies no matter what the economy is like. So, you can invest in healthcare companies when seeking stable investment opportunities.

7.       Social Work

Even if there is an economic downturn, the demand for social workers doesn't go down. In fact, this demand often increases as financial troubles can lead to increase stress, abuse, and even domestic violence.

8.       Financial Services and Accounting

No matter the economic situation, people still need to pay taxes and manage accounting-related tasks. Hence the demand for financial services and accounting remains constant. So, this is a good industry to invest in.

9.       Education

The need for education remains constant even in times of recession. During the COVID-19 crisis also, people sought educational opportunities online and offline. Therefore, this industry will grow steadily no matter what the situation is.

10.   Information Technology

We are all connected with technology these days. So, the demand for information technology services is expected to be high in the future, even if there is a recession.

Need more? Here is a 10 step guide to recession-proof your finances.

Also, here are a few tips on how to see a job during the recession.


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