In this recessionary environment where the housing market has fallen for 3 years in a row and the stock market has fallen over 30% this year alone, you may be wondering:
What industries can I invest in that may be recession resistant and maybe even thrive in a recession?
One such recession resistant business we have come across is in the dental industry.
Why will the dental industry remain profitable in relation to the larger economy?
- The failure rate for new dentists is less than 1% nationally. Through up or down markets the basic economics of the industry remain stable.
- There is a limit on the number of new dentists graduating each year from dental schools, and yet more dentists retire from the industry than new ones entering.
- The demand for dental services increases every year due to demographic trends and health awareness.
- The net result is that the number of dentists per capita will continue to decline for the foreseeable future
- A wide variety of dental services are available today in addition to the traditional cleaning, cavity filling, and root canals. For example:
- Teeth whitening such as Zoom!
- Adult braces such as Invisalign
- Veneers such as Lumineers
- Cosmetic dentistry in general
Of course, discovering the right industry is just the beginning of finding a great investment. You also want to align yourself with competent and trust-worthy management team who can create good systems and offer high-quality products or services, make sure your timing is right, and there’s enough profit to justify the risk. Above all, the investment has to further your personal goals in life. We tend to like investments that create passive residual income that grows over time.
Contact us if you want to learn more about alternative investments that are not correlated to stock market gyrations and housing market downturns.
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