Don’t look at media stocks. Well, if you must. Tech companies, too. If you’re wondering about the effects of the economic crisis on local advertising, AdWeek has a good overview story today. Quoting:
“Historically, local markets have been less susceptible to economic cycles because they are driven by small- to medium-size businesses that don’t have public shareholders to please and, thus, have less pressure to cut costs such as advertising. But given the broad implications of the credit market, ‘this is one time when a national situation is driving a local outcome probably more dramatically than it would ordinarily,’ said Steve Ridge, president-TV and exec VP at Frank Magid Associates.”
The best local sectors during a recession are necessity items like plumbers, health care, personal care and lower-end retail.