3 Industries To Watch As America Faces Economic Downturn

Golden bitcoin with Benjamin Franklin portrait from one hundred american dollars. Business concept of worldwide cryptocurrency. Buying bitcoins for dollars. Earnings on the growth of bitcoin.

Since about 2010 the U.S. economy has been experiencing a robust turnaround following a near collapse in 2008. It’s been slow but steady progress, but by 2018 it was clear that the U.S. stock exchanges were operating at a powerful level, and most every significant economic indicator was positive. Over the course of the year though, more negative predictions have been trickling into the U.S. economic psyche. Experts and the ultra-rich are predicting a U.S. recession, and the perception is that it could begin in 2019. 

Debating the merits of this prediction is a complex process, but suffice it to say the indicators are fairly convincing, and the markets have in fact already begun to dip. What we’re focusing on here instead is a few industries that people may want to keep an eye on for potential surges even in the event that the American markets experience a dramatic downturn.


1.) Cryptocurrency 

There are such things as financial safe havens in times of economic struggle, and they may just look different this time around. Typically there are some investors who will move some of their assets into precious metals and other commodities that have the benefit of not being linked to any one nation, market, or financial system. These can be “safer” places to store money when markets are going down, though that shouldn’t be taken as any sort of guarantee. At any rate, some have predicted already that trade wars in the U.S. could launch bitcoin as the new gold, and this speaks to the broader point that cryptocurrency could be viewed as a safe haven during the next recession. Again, that’s not a guarantee that cryptocurrency is a reliable place. However, it does have some of the same theoretical benefits as precious metals, which means we could see a surge of investment leading up to a recession.


2.) Betting Economy 

Betting is anything but a safe haven. However, there are two factors at play here as we look toward the States. One is that when people fear for their finances, they can sometimes try bold tactics, and this could conceivably lead some to treat betting opportunities like an alternative stock market. The other is that betting is going to be a new phenomenon in the U.S. right around the time a recession may set in. Over a dozen states are working to enact gambling legislation right now, and a small handful already have, which means that in the next year there will start to be accessible opportunities for people to bet with real money. While this is by no means a surefire way to make money, it could be treated as a sort of alternative market among enough consumers to make for an industry boost.


3.) Recreational Marijuana 

This is a different category because it’s about pure opportunity, rather than opportunity relative to an economic downturn. That is to say, the potential for legal, recreational marijuana as a multi-billion-dollar industry in the U.S. is so apparent that it may just have potential to surge even in the face of a recession. There’s also the small factor that people may look to marijuana to cope with economic anxiety and stress, but that may or may not have a real impact. The simpler matter is simply that this industry has astronomical potential, and will likely succeed even if the U.S. economy takes a dive.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.