Given the recent market rotation and the state of the economy I am of the belief that the United States is headed for a recession. The economy could be in the late expansion phase or possibly already in contraction as seen in the graphic from Fidelity. Either way it appears that a recession is likely. To profit from this I started my "recession portfolio". This portfolio holds names that I feel will outperform during a period of economic slow down and or recession. Many of the tickers are familiar to most, however the following are companies that may not be on your radar.
​
​
​
​
​
​
​
​
​
​
​
​
​
​
​
WRLD- World Acceptance Corp. engages in the small-loan consumer finance business. It offers short-term small instalment, medium-term larger loans, related credit insurance, ancillary products and services to individuals. The firm also offers income tax return preparation services to customers. The company also markets computer software and related services to financial services companies through its subsidiary, ParaData Financial Systems. It operates in the following segments: Small Loans, Large Loans, and Tax Advance Loans. World Acceptance was founded in 1962 and is headquartered in Greenville, SC.
​
WSC- WillScot Mobile Mini Holdings Corp. provides modular and portable storage services. The firm offers furniture rental, transportation and logistics, storage & facilities services and commercial real estate services. It offers turnkey office space and storage solutions for temporary applications in the commercial and industrial, construction, retail, education, health care, government, transportation, security and energy sectors. The company was founded on June 26, 2015 and is headquartered in Phoenix, AZ.
​
LQDT- Liquidity Services, Inc. engages in the provision of e-commerce solutions to manage, value, and sell inventory and equipment for business and government clients. It operates through the following business segments: GovDeals, Capital Assets Group (CAG), Retail Supply Chain Group (RSCG), and Machinio. The GovDeals segment provides self-directed service solutions that enable local and state government entities including city, county, and state agencies to sell surplus and salvage assets through the firm's GovDeals marketplace. The CAG segment offers managed and self-directed service solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus and idle assets. CAG also offers a suite of services that includes surplus management, asset valuation, asset sales, and marketing. The RSCG segment consists of marketplaces that enable corporations located in the U.S. and Canada to sell surplus and salvage consumer goods and retail capital assets. Its services also include returns management, asset recovery, and e-commerce services. The Machinio segment operates a global search engine platform for listing used equipment for sale in the construction, machine tool, transportation, printing, and agriculture sectors. The company was founded by William P. Angrick III, Jaime Mateus-Tique and Benjamin Ronald Brown in November 1999 and is headquartered in Bethesda, MD.​
​
EZPW- EZCORP, Inc. engages in the provision of pawn services. It operates through the following geographical segments: U.S. Pawn, Latin America Pawn, and Other Investments. The U.S. Pawn segment includes all pawn activities in the United States. The Latin America Pawn segment refers to all pawn activities in Mexico and other parts of Latin America. The Other Investments segment consists primarily of the equity interest in the net income of cash converters along with investment in Founders and RDC. The company was founded in 1989 and is headquartered in Rollingwood, TX
​
OLLI- Ollie's Bargain Outlet Holdings, Inc. is a holding company, which engages in the retail of closeouts, excess inventory, and salvage merchandise. It offers overstocks, package changes, manufacturer refurbished goods, and irregulars. The company's products include housewares, food, books and stationery, bed and bath, floor coverings, electronics and toys. Ollie's Bargain Outlet Holdings was founded by Mark Butler, Mort Bernstein, Oliver Rosenberg and Harry Coverman on July 29, 1982, and is headquartered in Harrisburg, PA.
