With the election over, I often find myself contemplating what is on the horizon. I'm frequently asked, "What's next?"
Numerous businesses closed forever and millions have lost jobs. Companies that managed to stay afloat are counting huge losses.
However, many businesses had an opposite experience, many would even call them "recession-proof." But not exactly in the sense that they weren't hit. But more like, they fared better than you anyone else would expect.
There are industries that thrive when their counterparts are dwindling. And most of these industries are what you would term service industries.
Here are some of the industries that did well this year and are coming out strong post-election:
Beauty Industry
When considering investing in an industry, few people think of the economic endurance of the industry. And it only hits them when it's too late to turn back.
While it's true that no industry is fully recession-proof, it is also true that some are more resilient than others. And you can say this about the beauty industry.
During financial difficulties, few people would consider indulging in luxury services. But most people try to pamper themselves to some degree, simply for a mild escape from the rigors of everyday living.
The economic theory of the lipstick effect is truer than most can ever imagine. It will surprise you to note that people typically increase their supply of beauty products in depressing times.
Services such as barbering and eyebrow shaping can withstand almost any difficulties. Can you picture a society of overgrown hair and eyebrows?
Beauty companies such as ULTA and Sally made it through the recent depressing times with no sign of being in the same world we all live in. The sales of both companies improved this year and will continue to do the same.
The entire cosmetic market is set to grow by at least 6% in the coming years.
Food and Drinks
People need to eat whether there is war or peace. In both good and bad times, people will not do away with eating. It's a necessity for our survival, after all.
Although more people started making their meals during the recent financial difficulties, it didn't put restaurants out of business. Take outs and deliveries were still an option.
Restaurants such as Chipotle almost tripled in profits for their digital orders and are one of the companies looking forward to coming out strong post-pandemic and the coming years.
Surprisingly, even candy and sweet companies thrived. Who would think that so many people turn to sweet treats for comfort?
Grocery stores also make the list of those that thrive. It's impossible to ignore how many people flocked to the local store to add supplies. Although most did so in a panic, the stores made more sales than they had in years.
It reached a point where demand exceeded supply. But luckily, the situation did not last long.
Energy
Although the economy is volatile, the energy industry always manages to stay afloat. When oil companies did not fare as well, renewable energy did. After all, people still need to light their homes and power other aspects of their lives.
Marijuana Industry
Indeed it's been wonderful a year in this industry. And although the marijuana industry is not recession-proof, it's worth a feature in this article.
Many states are legalizing marijuana for either recreational or medicinal uses. And in most cases, it's legal for both. Soon, a lot more states may create policies that allow its lawful use.
Marijuana legalization was on the 2020 presidential ballot in at least five states. And of course, Marijuana. The next obvious step is for the states to create regulations and policies which will provide vendors with permits.
Tech and Implications of Biden Win
The tech industry has shown dominance that people once lauded. Now, not so much. There are several antitrust issues that the former president wanted to address.
While there are more pressing issues at hand, this is still a matter that has investors on their toes. Reining in the tech giants will not be an easy task. And reforming the decades' old laws may also be a challenge.
Current law protects tech giants (like Twitter) from being liable for the posting of others. Penalizing Twitter and other platforms alike for hate or racist postings means reforming the law. However, will Biden be a proponent of this effort?
All in all, it's too early to tell what is cooking in the president elect's mind.
Bottom Line;
The future looks brighter post-election. And everyone hopes that it stays so. Although some industries are more economically resilient than others, many of the affected sectors are on the pathway to recovery.