Recession-Proof Stocks

Cramer on Direct Selling

The direct selling business works best when times are bad, with Mad Money host Jim Cramer.

Not every company struggles during a recession. In fact, direct sellers like Avon tend to do quite well. As cost cutting forces employees out of traditional jobs, the company’s door-to-door sales force swells in number.

Not to mention, direct sellers enjoy high gross margins, low capital intensity and lots of free cash flow. And there’s plenty of room for growth here, as Avon , and peers like Herbalife and Tupperware , expand overseas. The weak dollar benefits all three companies, Cramer said, in markets with no real competitors.

Watch the video for Cramer's call on Avon and Herbalife.

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