[legion]

As the economy turns south, what businesses will be in the best position to GAIN from a downturn?

I'll start...

While general contractors will be hit hard by the lack of new housing starts, I think that certain contractors will do very well. Specifically, those that specialize in home improvements. For example, I am putting in a concrete patio this year, my contractor, who doesn't do new construction, says he is on track to have his best year ever, and it's only March! He hasn't poured a single patio yet this year (waiting for the ground to thaw), and he is already booked until September. He has had so much money come in already from deposits, he is looking at adding a second crew (which entails buying a second cement truck, a second powered wheel-barrow, etc...). That's quite a capital investment for his small business.

I'm also going to say that Apple will do well. I don't think they will sell many new iPods or laptops, but I think their iTunes business will serve as comfort food as people buy a new song here and there and ramp down spending on larger items.