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Thanks for sharing. What are examples of counter-cyclical companies?
by fblp 6y ago
Thanks for sharing. What are examples of counter-cyclical companies?
- gen220 6y agoInsurance carriers are the poster child for counter-cyclical business (https://en.wikipedia.org/wiki/Insurance_cycle https://en.wikipedia.org/wiki/Insurance_cycle). (Tangentially, article is interestingly pretty opinionated for wikipedia! Strange.) Staple goods and foods are also generally counter-cyclical, because in times of prosperity, people tend to eat out and travel more. There aren't many examples of VC-backed companies in this category, because it's very very hard for upstarts to break into counter-cyclical industries.
- jandrewrogers 6y agoGovernment is a common counter-cyclical.
- nostrademons 6y agoGaming and other cheap (fixed-price) entertainment is often counter-cyclical. When people get laid off they have more time to fill; similarly, when the general mood is depressed, people look for things that will distract them from their miserable predicament. There're some other niche examples, eg. liquidation specialists and bankruptcy lawyers. These are pretty obvious ones: anything that people do when they lack money tends to get a boost in a recession.