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Investing

Opportunities During a Recession

You’ll be hard pressed to find a truly “recession proof business,” but if you are looking for investment opportunities, that is a completely different story.  Today I’ll speak about opportunities during a recession in hopes of helping people prepare for what could be a very daunting recession as 2023 unfolds.

What Opportunities Exist During a Recession?

If the sound of a recession is scaring the living daylight out of you, you aren’t alone.  For that reason we have been urging investors to be prepared this time by converting 401ks to physical gold.

This process is made simple if you use one of the top gold IRAS.  Our company has spent years doing research and analysis to create this list, so don’t take it lightly.

If you want to skip to the #1 recommendation, you can get their free wealth protection kit here.

Now, with that advisory out there, let’s get into other opportunities to not only preserve, but create wealth during a recession.

First, you must ask yourself what your goals are.  There isn’t a right or wrong answer, as everyone’s financial position varies, but here are some of the things you should look into:

  • Are you looking to minimize risks involved with the stock market?
  • Are you looking to create long term returns?
  • Are you looking for a fixed income source?
  • Are you looking do buy the stock market at historic lows?

When you build a portfolio, these are all questions that you should ask yourself.  

Depending on these answers, there are a variety of solutions that can be recommended.

For example, if you are looking to minimize risks involved with the stock market, the easy answer would be to open a precious metals backed IRA.

By doing this, you can allocate whatever portion of your IRA (or 401k, or pension), to precious metals.  This is something that SAVED the wise investors who did this during the last economic meltdown.  Personally, I saw my portfolio go down 50%, while I sat on the sidelines and watched precious metals prices more than double in value.

Not this time, I’m ready with a diverse portfolio.

Also Read:  Where to Move Your 401k Before a Stock Market Crash

A long term investor may want to be buying equities that are essentially on sale.  “Buying the dip” and waiting it out can be a source of huge gains.

Stocks Sectors to Buy During a Recession

In a recession, not all stock market sectors are created equally.  In fact, there are sectors you can invest in that may be safer to invest in during a recession.  Most of those are consumer-focused, including the below sectors:

  1. Communication services.

  2. Consumer discretionary.

  3. Consumer staples.

  4. Energy.

  5. Financials.

  6. Health care.

  7. Industrials.

  8. Information technology.

  9. Materials.

  10. Real estate.

  11. Utilities.

Some sectors, like utilities and health care, may even outperform other sectors.

Should You Buy Dividend Stocks During a Recession?

A fixed income source, dividend stocks, are great to invest in during a recession because they offer routine payments.  You can withdraw the money earned via dividends, or you can re-invest it into the stock and increase your future dividends.  When you invest in  a stock and it goes down by say, 15%, if the stock pays you a dividend of 4.5%, by re-investing that money right back into the stock you aren’t seeing such a negative downside.

This is one way of “buying the dip.”

The last way you can take advantage of a recession is by investing in stocks when they are low.  Anyone who purchases in down markets and rides them back up into greater times can speak to this.

While timing may be everything, you can follow these very simple steps to help yourself not only survive, but also thrive during a recession.