How To Invest During Recession ?

Global growth is fading, central banks are talking about cutting rates, and the US yield curve has inverted so it is a good idea to think about what a recession would mean for your portfolio. How will a recession affect US asset prices and what strategy can we adopt to ride out the volatility? Welcome to The Atlantis Report . When the economy is booming, you may not think about what could happen to your investment portfolio during a market downturn. But economic slowdowns tend to be cyclical, so it’s not unrealistic to expect another recession at some point in the future. Thinking about what to invest in when the economy starts to slide is important if you want to protect your assets. Here are five things to consider when a recession hits. Opportunities are around all the time if you are looking for them and welcome them when they present themselves. A recession can be the best possible time to begin investing because asset prices often fall hard, meaning you can pick up stocks, bonds, mutual funds, real estate, private businesses, and more for far less than you could just a few years prior. As other investors are forced to dump their assets, you can step in and pick them up for a fraction of their value! #1. Core Sector Stocks . During a recession, you might be inclined to give up on stocks, but experts say it’s best not to completely steer clear of equities. When the rest of the economy is on shaky ground, there are often a handful of sectors that continue to forge ahead and provide investors with steady returns. If you want to help insulate yourself during a recession without leaving stocks behind, you may want to consider investing in the healthcare, utilities and consumer goods sectors. People are likely to still spend money on medical care, household items, electricity and food during a recession so these stocks may end up being less volatile than those in other sectors. #2. Reliable Dividend Stocks . Investing in dividend stocks can be a great way to generate passive income. When you’re comparing dividend stocks, some experts say it’s a good idea to look for companies with low debt-to-equity ratios and strong balance sheets. If you don’t know where to start, you may want to look into dividend aristocrats, which are companies that have increased their dividend payouts for at least 25 consecutive years. #3. Real Estate . The 2008 housing market collapse was a nightmare for homeowners but it turned out to be a boon for some real estate investors. When a recession hits and home values drop, it may be possible to score a deal on an investment property. If you can rent the property out to a reliable tenant, you might end up with a steady stream of income that you can use while you ride out a recession. #4. Precious Metals . Precious metals like gold or silver tend to perform well during market slowdowns. But since the demand for these kinds of commodities often increases during recessions, their prices usually go up, too. #5. Invest in Yourself . If you’re laid off during a recession, you can rebound by investing in yourself. You could go back to school to gain additional knowledge or skills that could help you get a better job. Paying down debt is another option if you’re worried that your job situation might go south at some point. The less money you have to spend on bills, the less stressed you’ll feel during an economic crisis. In Conclusion : Diversification Still Matters . That said, it's dangerous to pile into a single sector, including consumer staples. Diversification is especially important during a recession when particular companies and industries can get hammered. Diversifying across asset classes—such as fixed income and commodities, in addition to equities—can also act as a check on portfolio losses. Finally . Instead of panicking when you hear that the economy is sinking into a recession, it’s a good idea to make moves to try to protect your investment portfolio beforehand. By thinking about the worst when things are still good, you might be able to keep yourself afloat through the turbulent times.









The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more