How to make money during a recession

With so much talk about a slumping economy and a downsliding stock market it is hard to imagine grasping onto any hope of yielding a profit during these times. This article will suggest some tips that may help you survive during an upcoming recession.

Instructions

Difficulty: Moderate

Things You’ll Need:

• Financial Calculator
• Wall Street Journal
• Computers
• Business Mind

1. Many of the country's wealthiest entities made their money from snatching up bargained stocks and holding on to them until the market recovered. If you are able to leave your investments to grow over a 5 to 10 year period, it is pretty likely that you will earn a decent profit. You simply need to search for well established companies that are sure to be around and stable in the next 5 to 10 years. Think of companies such as Coca-Cola, General Electric, Proctor and Gamble, and the like. You want to pick companies with low debt, steady growth, and strong earnings. In order to pick the best stock from a list of strong companies, pick the one that is farthest from its 52 week high. This is called Value Investing.
2. Do not use all of your investing money to buy up as many shares as you can at once. Break up your purchasing throughout the year. In a recession, stocks are likely to continue decreasing in price. By the end of the year, you will have more stocks for your money than if you would have purchased them all at once.
3. Next, look towards industries that thrive no matter how the economy is doing. People always need to eat. People always need household supplies, even if they aren't spending as much on them. They always need utilities. Invest in these companies.
4. Another way to make money during a recession is to buy under priced stocks of a company that is estimated to thrive during a recession. These will be companies that provide a product or service that is "needed" rather than "wanted". Also, since people spend less money during a recession and usually hesitate to put out cash for large luxury items, they will more than likely spend on accessories for the items they already have. This can include video games, digital camera components, mp3 player accessories, etc. Look to invest in these types of companies.
5. If you implement these tips and use sound judgements before jumping into any investment, your finances should begin to show promising growth and security in this unstable economic time.
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Tips & Warnings

• Don't buy all your stocks at once
• Research companies thoroughly; BEFORE INVESTING!
• Don't sell, unless you absolutely have to.
• In this kind of a "Bear" market, prices are likely to fall even more after you purchase stocks, be patient, if you researched your investments thoroughly, you will be rewarded when the economy bounces back..........and it will, it always does.