Posts Tagged ‘recession products’

Contrary to popular opinion, a recent MarketWatch story reports that so-called “sin” industries like tobacco companies, casinos and distillers haven’t been faring well in this recession. A few stock funds that espouse Catholic values, on the other hand, have done better.

It’s often been said that during tough economic times, liquor sales and gambling continue to thrive because consumers turn to them for cheap entertainment or escape from their problems. Read more »

When faced with a recession, people talk about cutting back on all the non-essentials to reduce spending and keep their budgets in line. Things like cable TV, coffee shop lattes, and brand-name items are the first to go for many people. But what are you not willing to give up, even in a recession?

So-called sin stocks, like gambling, liquor, and candy companies, perform well even during a recession, according to USA Today.

1. Cigarettes
   Despite the well-known health effects of smoking, there are millions of people around the world who would rather sacrifice something else than give up their cigarettes. Despite the global economic downturn, several tobacco companies are reporting increased profits.
2. Alcohol
   Whether you’re the type of person who enjoys a glass of wine with dinner or a six-pack of Budweiser in front of the TV, it’s a luxury many people won’t give up during a recession. In fact, Anheuser-Busch is moving forward with price increases to keep up with the rising costs of raw materials.
3. Cell Phones
   Everywhere you go, you’re bound to see people chatting on their cell phones. Phones that were once a novelty and a luxury for people with large disposable incomes are now considered a necessity by many, regardless of how much money they earn. Personally, I think cellular phone providers would have to start canceling cell phone accounts for non-payment before people would give them up!
4. Candy
   Surprisingly, many candy makers (including Cadbury and Hershey) are also reporting increases in profits during the last quarter, despite the recession. Seems people are buying sweets to comfort themselves — or simply don’t feel the cost of a candy bar is going to break the bank.
5. Beauty Care
   Some women just couldn’t do without their makeup bag or every-other-month appointment at the beauty salon. From manicures to pedicures, hair waxing, hair cuts, coloring and styling, brand-name beauty products rarely see a big decline during a recession.

What about you? What types of products or services will you keep, even during the recession?