Investing During a Recovery Investing for Retirement

Investing During Recessions

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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.