Make it.
In a recession, the best option for you is to invest in sectors that have proven to perform well during recessions.
These are all the services that people need, even though they are saving money. So – I will be honest with you – this isn’t crypto.
Even I and other all-in crypto fans had to go through a realization that crypto can’t replace food or health. That is why your best bet if the recession creeps in is:
- Consumer’s sector (drinks, beverages, alcohol, tobacco): Walmart Inc (WMT), Procter & Gamble Co (PG), Nestle SA (NSRGY), Coca-Cola Co (KO), and PepsiCo Inc (PEP) are just a few of the largest ones out there
- Communication servicee: AT&T Inc. (T), Verizon Communications Inc. (VZ), Nippon Telegraph & Telephone Corp. (NTTYY), Deutsche Telekom AG (DTEGY), T-Mobile US Inc. (TMUS)
- Health care: CVS Health Corp. (CVS), UnitedHealth Group Inc. (UNH), McKesson Corp. (MCK), AmerisourceBergen Corp. (ABC), Cigna Corp. (CI), Cardinal Health Inc. (CAH)…
- Energy: Saudi Aramco, ExxonMobil, Chevron Corporation…
Don’t be fooled, though! Even these stocks will go down in a recession, just not as much as the market on average.
LIVE TO INVEST
What I have learned until now is that there are so many things that I wish to buy, that even if I was a millionaire I would not be able to have them all. That is why, the first thing you need to do when you get your paycheck is to invest.
How to do it?
- Look back at how much your monthly expenses are on average.
- Keep that amount in your bank account.
- Invest everything else.
In my case, I can invest 70% of my income. And I wish to increase that in the future by increasing my income.
Now comes the most important thing. To do - what I just described above - and still stay vigilant in the case that the market tanks for the next decade, you need backup money. Some serious backup money. Probably the most common estimate out there is saying that you should keep enough money to keep you going for three months. But I recommend much more, 6 months.
Investing during a recession can be a terrific idea, but only if you're in a solid enough financial position to do so and only if you have the correct mindset and strategy. Never forget about your short-term financial stability to achieve long-term success. Remember that it's okay to pass up opportunities if you're struggling financially. Instead, concentrate on making your payments and maintaining your physical and mental well-being. You may always increase your assets at a later time in your life, once your job is more stable, and your income is consistent.
FACTS
People will not spend money on new technology or crypto if they have to struggle to get basic materials.
Do not try to find the bottom.
Never sell stocks just because they are down.
Don’t day-trade if you are just as terrible at it as me.
Never buy stocks that everyone is talking about. If it’s a hot topic, you are too late.
