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.

Difficulty: Moderate

Instructions

Things You'll Need:

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

1. 
    
   Value Investing

   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. 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.

2. 
    
   Invest Regularly

   Break up your purchasing throughout the year. Do not use all of your investing money to buy up as many shares as you can at once. 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. 
    
   Secure Companies

   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. 
    
   Under priced stocks

   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. 
    
   Invest wise

   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.

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.

Resources

• Use this program to make money

[annettetush]

on 3/2/2009 Wonderful info. Some people can also think of network marketing if it is a perfect fit.Tushhttp://www.AnnetteTush.com

[annettetush]

on 3/2/2009 Wonderful Info. Some people can also think of network marketing if it is a perfect fitwww.AnnetteTush.com

[AnthonyDonnelly]

on 12/15/2008 Another GREAT way to make money during a recession is to invest in an industry that does well in both good and bad economic times, like the one I had the foresight to invest in three years ago and have never looked back since! Merchants Barter Exchange (www.barterfranchise.com)

It's now like my very own, private bank. This recession and the impending depression - trust me, it's coming! - don't have me worried at all.

Excellent How To article, btw

[klnygaard]

on 7/3/2008 good article. Saw it posted in the forum and wanted to take a look.

[joyful327]

on 4/18/2008 Interesting and good article!