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Market Extra: Here’s the good news if there’s a recession — nearly half the Fortune 500 was created during times of economic stress, Morgan Stanley says.

The bad news is, with inflation seemingly a lot stickier than everyone expected, the Fed is going to need to keep lifting interest rates. And that rate hike campaign may very well drag the economy into a recession.

The good news is, recession is what sparks innovation. According to Morgan Stanley, roughly half of Fortune 500 companies were founded in times of recession or economic crisis.

“Necessity is the mother of invention. This is why warfare and space exploration have routinely spawned radical new technologies which, over time, have become almost mundane in consumer mass market,” says the U.S. investment bank.

Here’s their compilation of companies created during periods of economic stress.



1927-1933, -27% GDP

Advance Auto, CHS, Markel, First Energy, Century Link, Publix, American Airlines, Baxter, Allstate, United Airlines

1937-1939, -18% GDP

T. Rowe Price, Caesers, Progressive, REI, Cumberland, Dillard’s, Owen Corning, Tractor Supply, Darden, Fannie Mae, HP

1945, -12% GDP

JanPak, U-Haul, Mattel, Cantor Fitzgerald, Constellation, Kaiser Permanente

1949, -2% GDP

Buckle, American Signature, True Value, Rollins, Robert Half, Hexcel, Dick’s Sporting Goods, Manpower, Pottery Barn, ADP

1953, -3% GDP

Burger King, Autoliv, Sargento, Umpqua, Apache, Loews, Lennar

1957-1958, -4% GDP

Hyatt, Anixter, O’Reilly Automotive, Trader Joe, Visa

1969-1970, -3% GDP

Domino’s, Century 21, AMD, Gap, Sysco, Danaher, Humana, Freddie Mac, FedEx

1973-1975, -3% GDP

Bain, Foot Locker, UnitedHealth, TD Ameritrade, Microsoft, Charles Schwab

1972-1982, -2% GDP

WWE, AMC, Lam Research, DISH, Amgen, Molina, Activision Blizzard, MTV, E-Trade, EA, IQVIA, Adobe

1999-2001, -1% GDP

Workfront, Medallia, Just Eat, MailChimp, Bloom, Vonage, Salesforce

2007-2009, -5% GDP

ZenDesk, US Foods, Cloudera, AirBNB, Groupon, Slack, Square, Uber

Source: Morgan Stanley

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