10/13/2026
As Wayne Anderman wrote in his article for Forbes.com, certain sectors are considered essential—or ‘inelastic’—because consumers will need them, regardless of price increases. Other sectors are highly sensitive to current prices, and their popularity—or ‘elastic demand’—fluctuates when money is tight for consumers.
When economic growth is modest or slowed, investors can limit their exposure to 'optional' goods and services. Proper diversification doesn’t eliminate the risk of investing nor guarantee profits, but it can reduce the effects of one bad investment or hard-hit sector. The economic landscape may continue to evolve but understanding where your portfolio can be more or less sensitive to changes in consumer demand remains important.
Revisit the article here: https://www.forbes.com/councils/forbesbusinesscouncil/2026/07/24/elastic-vs-inelastic-what-investors-need-to-know-about-demand-when-a-recession-may-be-on-the-horizon/