Recessions are tricky when it comes to
investing in
profitable financial instruments. Traditionally, investors have gone to
precious metals and some
money market securities. However, precious metals can be
expensive (and are still risky) and money market securities generate
low returns which can be even lower in times of recessions due to the
high demand. Therefore, the key to remaining
recession proof is to keep an eye on the bigger picture. Successfully investing in financial instruments during a recession is a
function of
time, not timing. Therefore, you should only
invest in that which you somewhat feel comfortable investing in which usually means investing more conservatively. You may
experience some losses, but don't forget that
undervalued financial instruments
pay off handsomely in the long-run.