3 Market Sectors That Can Be (Mostly) Recession Proof

Everywhere you look online, you are bound to see articles related to the impending recession and its economic ripple effects. These effects, including expected job cuts and high default rates, would logically imply that consumers were cutting spending everywhere. But logic and recessions don't necessarily go together.

Despite dire warnings and gloomy markets, people are not evenly tightening their belts. Instead, they tighten here and loosen there. In fact, they're willing to be surprisingly generous with their money when they feel they're getting some serious value in return. This is good news for budding entrepreneurs ready to identify and fill niches.

Currently, three major sectors are doing well despite inflation. Founders looking to enter these sectors could find themselves in a surprisingly good position. Below are the sectors, what's going on there, and how dreamers can fill in the gaps.

1. Travel, tourism and gastronomy

According to a recent Bloomberg report, consumers aren't skimping on life's simple pleasures just because Wall Street is in turmoil. Even as grocery costs rise, travelers and diners are prioritizing adventures and meals. As Wells Fargo economist Tim Quinlan explains, the phenomenon continues even if it may seem counterintuitive. He notes, "While consumers aren't happy with the prices, they're somehow willing to pay to have these experiences for a while."

Why are consumers sinking in the sand when it comes to not giving up flights and fast food? One answer is that this is the result of the pandemic shutdowns, which have caused many people to reassess what matters most to them. Travel and food represent freedom and pleasure. These are the last things anyone wants to give up again.

Remember: when the world opened up, people didn't hesitate to start exploring again. Whether they've been to familiar or exotic places, they've elevated travel to a must-do activity. Now, restrictions have been lifted in most parts of the world. This is causing even more jet setters among those looking for something exciting and new after almost three years of confinement.

Entrepreneurs entering this vast space cannot just jump in and expect miracles, of course. Finding success is not impossible; it just takes a desire to disrupt. Airbnb launched in 2008, not a great year for most individuals or businesses, and rose to the top of the lodging industry fairly quickly.

2. Cosmetics, skin care and beauty

Americans want to look good no matter what their 401k is doing. As a coping mechanism,