Benefitting Industries

Here are some of the industries which will gain during the recession. These industries are chosen according to the principles I outlined earlier in this write-up - http://sin-letter.blogspot.com/2008/04/since-we-are-in-beginning-of-us.html.

1. Fertilizer companies:
They will benefit from the global food shortage, as well as the rising demand for higher protein diet that is coming from across the developing world as it becomes more wealthy. However, the high cost of the input like naptha or natural gas, may prove to be a dampner.

2. Service providers to Energy/Utility companies:
These companies provide logistics, maintenence services, etc. to larger oil/gas/energy or utility companies. They will benefit since their customers are facing the beautiful combination of excess cash and rising demand.

3. Medical services companies: These companies will benefit from the most significant US demographic trend going on right now - the retirement of the baby-boomer generation. The older generation will require more medical services as time goes by.

4. Agri-produce companies: Such companies will benefit from the global shortage of food.

5. US companies with high exposure to non-US economies: Since it appears that the Federal Reserve is set to devaule the Dollar, the currency will continue to fall - benefiting US exporters at the cost of foreign competition. It will also benefit those US companies which earn a significant portion of their income outside the US, as currency translation will increase its income in Dollar terms.

6. Companies providing goods and services for the infrastructure build-up in the developing countries: There is a lot of pent up demand for infrastructure in developing countries as in Africa, LatAm, besides India and China. Big beneficiaries will be shipping companies, telecom infrastructure companies, etc.