With the financial sector beginning to thrive anew while the jobs market continues to flounder in the US, many investors are starting to fear the growth of the next big ‘boom and bust’ cycle. However, not all industries are equally affected by the burst of a bubble. Those who are in doubt about the current prospects of their investments would do well to give these five industries some serious consideration.
The Repo Man Cometh
The repossession man, or ‘repo man,’ is infamous for his ability to thrive in circumstances that cause finances to tighten for everyone else. With an observable tendency of experiencing surges in business even in the middle of major economic downturns, repo companies are safe investments for the foreseeable future. Although statistics on the overall size of the repo industry are difficult to come by, market growth in the US has been slowly but steadily climbing since 2009, and is estimated to reach even greater heights by 2018.
A Friendly Walk with Fido
The pet industries are continuing to do well, partially because even someone on food stamps can appreciate the simple pleasures of a cat in their lap, and partially because of the extremely cheap costs of start-up pet companies. A pet-sitting or dog-walking chain can be set up from scratch for a fraction of the entry costs into many other industries. Industry size has grown from under twenty billion in the nineties to fifty-five billion as of 2013, with confirmed growth straight through the latest recession.
Pawning Your Way to the Bank
To no one’s surprise, pawn shops also do well through recessions, and maintain good growth during better economic times, as well. As short term investors with gold bug fever get bitten on their investments, it’s pawn shop owners who profit from their mistakes. Heavy business for pawn shops like Sam Light Loan Company often coincides with increased barriers to acquiring loans from banks and credit card companies.
A Dollar a Day Keeps Poverty Away
With annual profits at roughly sixty billion, you’d be particularly short-sighted not to see the advantage to investing in a dollar store chain. Although, like most retailers, dollar stores are labor-intensive to run, they also are highly successful in competing with the behemoth Walmart brand – usually by targeting locations insufficiently dense for Walmart to turn a profit. Their brand names may not be as widely advertised as other chains, but their prices speak for themselves, and less money spent on advertising means more for the bottom line.
The Tuneup That Never Goes Out of Style
While stricter spending budgets have forced many drivers to keep their old clunkers around for longer than they’d like, the inevitable consequence is that auto repair shops have as much work as they can handle. Although the advantages this industry has in the short term are obvious, even as far ahead as 2019, the auto repair industry is estimated to experience growth, which is fairly impressive for an industry that’s already rolling in sixty billion in revenue.
Ultimately, economic growth is as inevitable as inflation: a verified and re-verified trend over time that’s fundamentally inescapable. While one industry may be in the midst of dying off, another is most assuredly taking its place – and all you have to do is keep an eye on the businesses that offer products or services with obvious, sustainable value.