When people forget the unwritten rule, 'Everything comes at a price', recession must set in, to remind the forgotten aphorism. Unfortunately, nobody can be insulated from recession, as we are all part of a globalized economic system. An economy must go through such periods, to emerge leaner and stronger than before.
The economy slows down during this period, but things don't come to a standstill. The show must go on and it does. Indeed, as many big businesses crash during recession, many more become stronger due to the new opportunities which the situation presents.
Best Investment Options During a Recessionary Period
As per a few advices, cash or liquidity is an asset during recession. The more liquidity you have, more are your chances of staying afloat. During these times, liquidity is the main problem. So, good investments in a recession are the ones which can ensure a steady cash flow and keep the business wheels turning.
There are reasons for gold being a safe option. The main reason is currencies of many countries are still correlated with it. The rarity of gold makes it an interesting option. This is why it has been the investment standard since ancient times. If in doubt, buy gold or invest in other precious metals.
Why would one suggest 'Real Estate' as one of the best investments in these times, when the crashing of the market was the 'prime' (rather sub-prime) reason that caused the collapse? For the very same reason. The properties in prime localities and business areas, which were once beyond your reach, can be bought or rented today, at substantially lower rates.
If you are looking for business expansion into bigger premises but were holding it off due to high prices, then now is the time to go for it. Real estate investment is a good option, if you can generate revenue from the business conducted in your property acquisitions.
If you are hoping to make money through resale of the properties, then recession is not a good time to invest. Only for expansion purposes, recession is a good time.
These bonds are some of the most low-risk investments you could ever make. Their yield is low, but they are safe options. If you cannot trust the US treasury, in whom will you place your trust? So, treasury bonds are a good option. They can give you steady and fixed returns.
Thinking small is a crime and recession creates a lot of opportunities, in terms of cheaper infrastructure. You can acquire and expand your business also, in terms of manpower, as recession renders many skilled workers to be jobless. So, investing in your own business, if you have faith in its growth, is a good idea.
One cardinal rule, often recommended by master investors, is to not invest in any sector, that you do not understand. In short, make an informed choice of investment, within your circle of competence.