Certain sectors are profiting from the recession. As these companies increase in value, so does their stock. Payday lenders, pawn brokers, collectors and low cost outlets are several of these industries. Several investment advisers are pushing them over other industries which have been more worthwhile in the past. Quick installment loans may be what you want at this time.

Economic climate isn’t getting better

There was a rise in unemployment to 9.2 percent in June. This was bad for many stocks. There has been an increase in the number of people living below the poverty line to one in seven which is the highest it has been since 1994. For two months in a row, there has been a decrease in consumer spending. At this time, the economy isn’t doing well at all. Nobody knows when it will get better either.

Tough economic climate means more money

Several businesses benefit from bad times. There has been a large boost in shares for discount outlets, collectors, pawnbrokers and payday loan lenders. And while that may raise ethical problems for a few, stock brokers are recommending buying shares from several of these companies.

David Rosenberg works as an economist at Gluskin Sheff which is a money management firm. He said, "People are broke. They're all chasing value. It's a seismic shift in mindset."

Huge increase in stock in just a year

Stock buyers were told in June to start seeking out Ezcorp (EZWP) stock by Sterne analyst John Coffey Jr. Average earnings in the last five years have been substantial. There has been a 48 percent increase total in stock. By one 3rd, the stocks were worth more than their cost, Coffey said. They would most likely climb in the near future. Now, the stock is double what it was just a year ago. It went up 7 percent in just hours after he made that suggestion.

Payday lenders are increasingly becoming a good investment. In the last year, the price of stock at Advance The United States Cash advance Centers (AEA) has doubled. Cash America International Inc. (CSH) is up 64 percent from a year ago.

Worthwhile for debt collectors

It is also true with other companies. This involves any with financial hardship. When compared to last year, the San Diego based Encore Capital Group (ECPG) profits are up 59 percent. This is despite the truth that the business has faced class action lawsuits in several states concerning its debt collection practices.

The opinions vary

Many professionals believe that it isn't that safe to invest in these kinds of companies. The chances the stock will increase are the same chances it will fall. Individuals may end up less financially stressed if the economy would recover. Then, stock in these corporations would drop. The businesses will not get as much traffic if the economy gets any worse either.

Articles cited

Huffington Post
huffingtonpost.com/2011/07/10/payday-lenders-pawn-shops-stocks-economy_n_894047.html

Cox
cox.com/myconnection/kansas/today/news/finance/article.cox?moduleType=apNews&articleId=D9OBNCT81