7 Industries That Actually Thrive When the Economy Tanks

Recessions aren’t just bad news for everyone—some sectors actually hold up or even grow when times get tough. Here’s the real breakdown:

The Essentials: Groceries, utilities, and healthcare don’t care about the business cycle. People still need to eat, pay their electric bills, and see doctors no matter what the economy’s doing. Defensive plays that rarely disappoint.

The Unexpected Winners: Ever heard of the “Lipstick Effect”? During downturns, people actually increase makeup purchases as a low-cost mood boost. Same goes for alcohol, tobacco, and legal drugs—demand holds steady or even rises when people are stressed.

The Overlooked Gems: Insurance and wholesale real estate might sound boring, but they’re solid performers in any cycle. Real estate wholesalers actually do better when distressed homeowners need quick cash. Insurance demand stays steady, and regulations keep competition limited.

The Bottom Line: Instead of panic-selling everything during a recession, rotate into these boring-but-stable sectors. They won’t give you 10x returns in bull markets, but they’ll sleep soundly during bear markets and keep your portfolio steady when everything else is bleeding.