"Health care, defense poised to weather recession" by Matthew Perrone, Associated Press | November 1, 2008
WASHINGTON -- With the global economy at risk of a deep recession, many battered areas of the economy stand to suffer more damage in coming months. Other industries, though, seem poised to withstand even a severe downturn.
The health care sector should hold up especially well even in a recession, along with defense and a few other industries. Still, analysts say a unique collision of economic and political challenges means many businesses might not be as well-insulated as they were in past recessions. Here's a look at major industries that, if not exactly recession-proof, seem best able to endure the downturn:
Health care
With an aging population and the largest health care spending in the world, the nation's medical sector could fare perhaps best of all. During economic downturns, sales of prescription drugs and medical devices tend to hold up better than nonessential goods, noted David Wyss, chief economist of Standard and Poor's.
Is that just a lie, or is the guy full of crap? See: The Poor Purveyors of Poison
"Generally, you're looking for things that are necessities, not luxuries," Wyss said. "People get sick and need medical care regardless of the state of the economy."
Then why can't we have universal health care?
Pfizer and Schering-Plough Corp. were able to offset weak revenue in the U.S. with higher sales abroad.
Yeah, poison the rest of the world, too.
Experts say pharmaceuticals are more vulnerable to economic cycles because employers have shifted more of the financial burden for care to patients, with higher copays and deductibles.
What more is there to say?
Defense
With the government spending hundreds of billions of dollars to fight wars in Iraq and Afghanistan, most big defense-related companies should also be able to withstand recessionary pressures.
That almost makes you laugh if it wasn't so murderous and foul!
See: Raytheon Rakes in Missile Defense Dough
Military spending has soared about 40 percent during the Bush administration, pushing up the stocks of General Dynamics Corp. and its competitors. Rivals such as Northrop Grumman Corp. and Lockheed Martin Corp. also have contracts that stretch decades into the future, as well as large cash reserves.
Looks as if the CRAP ECONOMY hasn't affected the WAR LOOTERS one iota!!!!
JSA Research analyst Paul Nisbet said that even a partial withdrawal from Iraq would hurt ammunition manufacturers such as Alliant Techsystems Inc. and General Dynamics.
Awww, too bad!! Think of HOW MANY IRAQIS LIVES would be SPARED!
Food and consumer staples
While health insurers and defense contractors are subject to policy changes in Washington, other sectors are more stable. Food companies such as Kraft Foods Inc. and Kellogg Co. tend to perform fairly consistently, even during tough times, which is why their stocks are holding up well, analysts say.
The food situation is stable, is that what they are saying? Pfffffffffttt!
I'm sorry, readers, i just lost my lunch.
As consumers begin eating at home more often, they are boosting sales at chains such as BJ's Wholesale Club Inc. that can deliver groceries at the lowest price, often at the expense of more high-end companies. Shares of Whole Foods Market Inc. have lost three-quarters of their value this year as the organic-food retailer lowered its outlook and suspended its quarterly dividend indefinitely.
Yeah, it is better if you eat shit, 'murka. Why not? MSM serves up platter after platter every day for you!
Hope the food ain't from China.
At the same time, chains such as Costco Wholesale Corp. and Kroger Co. have reported rising earnings as shoppers trade down to lower-budget store brands.
How's it taste, 'murkn?
Tobacco and alcohol
Beer and cigarettes don't seem as indispensable as food and medicine, but demand for tobacco and alcohol tends to remain strong in tough economic times.
Last month, Philip Morris International Inc. and Reynolds American Inc. reported results that topped Wall Street expectations. Executives said steady sales show consumers remain loyal to tobacco products even as they cut back on other expenses.
Translation: They are ADDICTED to the WORST DRUG EVER -- nicotine!!!
The beer industry has proved nearly as elastic. Its sales to retailers have risen about half a percent for the year, according to trade publication Beer Marketer's Insights. "Vices tend to be a good place to seek shelter because people pretty much support their vices -- at least the cheaper ones," said S&P's Wynn. --more--"
If you have a choice between misery and drunken misery, what are you gonna do? I'd want to throw a few back, too! Just DON'T SMOKE POT, whatever you do!!!!
