Three industries that make money against the downturn?
Reliable sister, 200W financial blogger with fans on the whole network, EMBA of Tsinghua & Cheung Kong Graduate School of Business.
The worse the economy, the more profitable these three directions will be. I am a reliable sister who loves to make money. I tell you that the economy will not change much from 2023 to 2025, it must be getting worse and worse, but there is still a chance to make money in a bad overall situation. I am bullish on three directions.
In the first direction, who do you guess is most feared when the social economy is bad? The answer is middle class. The middle class is the most fearful and anxious because their incomes will fall.
What is the middle class? White-collar management in the city, these people are often the first to be laid off by the company, and they are the most daring to deprive them of their benefits in society. Because they will not cause social instability, after all, there are houses, cars, children and families, so even if their income falls, even if they bear more pressure, they will endure.
What will these people do when they don't have money? They will seek spiritual comfort, so all spiritual products are actually aimed at products that make money in medium capacity. There are many of these, such as numerology tarot body, mind, soul, personal growth and knowledge payment. Do you see if these industries have become more and more profitable over the years?
The reason is very simple, because the middle class has no money and can't see the hope of making a million this year, originally wanted to work hard next year to promote a job to earn 2 million, but found that the company began to lay off employees, the salary dropped from 1 million to 800,000, but it fell and fell, it would be good to keep the job. Is the middle class in this case bitter and stuffy? The children at home are slowly growing up, the books they read are getting more and more expensive, the cost of living is getting higher and higher, and the wife is getting uglier and uglier. Do you say he can be in a good mood? So at this time, he must find a way to comfort the middle class with spiritual products, which is the first way to make money today, do you agree?
The second way, poor people bear huge living costs and pressures when the economy is bad, agree? So at this time, the upper echelons must give some benefits to the bottom, otherwise the society will be unstable. Just said that the middle class does not affect stability, but the bottom impact, so the worse the economic environment, the more money the poor will have, and it will not become less and more, because after all, the government can directly subsidize money. What home appliances go to the countryside, isn't it essentially subsidizing the poor? If the poor get subsidies, it means that the consumption power of the poor will rise, and they will buy a lot of things, things they originally wanted to buy but did not dare to buy. Beauty is good for mothers and babies, and the kitchen is good for fresh food. So now when the economy is bad, you can try to sell something to the poor.
You take a look at Pinduoduo's contrarian growth report, which contains a lot of wealth codes. I tell you that what is in Little Red Book is not China, but Pinduoduo is China's three ways to make money. Do you think that when the economy is bad, do rich people become richer, or do they become poorer? I tell you that the worse the economy, the richer the richer.
This is a very serious Matthew effect of money. Because after the rich man gets the money, in the economic downturn, the money he takes will not be invested anymore. When the economy is prosperous, if a rich person earns 100 million, he will not save this money, nor will he spend this money. He will take this money and reinvest it, whether it is buying a house or investing in a company.
But now the economy is not good, and he has made money. He found that it was not right to invest this money in a house, nor was it right to invest in anything else. So is this money pinched in his hand, and when he pinches it, he will deposit it in the bank, and there are still millions of interest in the bank every month, what to do with these interest? Just spend it.
So you see that the consumption of rich people will go up. You found that although the epidemic economy has been so serious in recent years, why are the sales of LV Hermès rising? Why has sales of luxury goods been rising? Because the rich man earns money and does not invest, he takes the money and spends it. So products that surround consumer goods for the rich can make money.
High-end education, high-end tourism, high-end insurance, all customized products, must be able to make money.
So to sum up, in a simple way, when the economy is not good, three things can make money: use material to satisfy the bottom, use spirit to comfort the middle class, and use high-end services to please the upper class.
I rely on my sister's attention to make a fortune.
