Monday, April 18, 2011, AM | Leave Comment
You know times are tough when economists and Chief Financial Officers (CFO) in a company cannot agree on certain economics terminology. Economists use the words “recession-proof” industries while CFOs shy away from that term and instead suggest that “recession-resistant” is more accurate. I agree with CFOs because I don’t think any economy or industry can be recession-proof. Death seems to be recession-resistant industry for investing. Invest in death and grow your money.
The following industries, among others, seem to pass the recession-resistant test.
Everyone, needless to say, has to die one day. Death and taxes are unavoidable. Sooner or later you pay for both. You pay for death with your life. You pay for taxes with your life as well, perhaps sometimes more than death. I don’t see the difference.
Why not invest in a company that helps us in our journey to the unknown. The company can help us in two categories:
- Cremation, and
- Burial caskets.
Look for a company that does both. Most do. The company’s products are not something you choose to buy. They are something you need to buy.
As long as we are on the subject of industries that seem to be recession-resistant, here are a couple more of the kind.
Child care is another area where consumers tend not to cut back. Many financial advisers say such businesses have remained strong. The best thing is that clients such as companies, hospitals and universities, etc. make a long-term commitment to child care. It is a major industry in itself, contributing to the national economy by creating jobs, generating tax dollars, and pumping money into local economies through the purchase of goods and services.
As long as parents are both working, there will be a need for quality child care. Many families are struggling to balance family and work while providing their children with quality care. Child care is central to the economic well-being of families, businesses, and communities. Businesses with child care programs report workplace improvements and bottom-line savings.
The video games industry is one of the fastest growing industries in the world. It’s the creation of a new form of interactive entertainment. In 2002, after the technology bubble burst, the Dow Jones Industrial Average dropped 22%. Meanwhile video gaming revenues increased 43% to $7 billion.
267 million video games were sold in 2007. That’s an average of 9 games per second. Console sales, dominated by Nintendo’s Wii, Sony’s Playstation 3, Microsoft’s X-Box 360 totalled $9.35 billion. Video game software sales alone top $33 billion in 2010, according to VGCHARTZ and FADE LLC.
In a Nutshell
Next time, when you talk to your financial adviser, mention these industries and see what kind of advice they give you.