I think it’s interesting from a recession point of view. When my husband worked for U-Haul corporate in Phoenix, he learned they make most of their money during recessions, as people move and use storage facilities.

That’s why I checked all the public storage places, and the PEs were over 25. Why is the stock market so darn overpriced?

What else does well in a recession?

I spoke with my A/C installer today. He’s been doing this for 25 years, and has seen several cycles in SD. He owns his house free and clear, has several stocks (AA since $2/share, etc.) He told me he bought Watts, the air conditioning manufacturer/seller, a few years back. I told him the company would reduced its profits during the recession, but he disagrees. He says people will stop buying cars and trips, but they will not quit updating their heating, buying TVs. He says the service industry is recession proof.

I don’t buy it. Watts probably made a lot of money as builders were going crazy overbuilding the last few years. this is all winding down. I think their stock will sink, too. The guy I talked to doesn’t want to sell any of his stock. he says eventually they will turn around. He’s in it for the long haul. This reminds me of people who don’t want to sell their house, because eventually it will come back to a higher price. I couldn’t convince this guy that a recession will cut his profits. He’s owned the stocks so long, that even a 60% reduction will not make him lose any money. So he really doesn’t care about any dips. Interesting situation.