How to Invest During a Recession

It’s tough to describe what living through a recession is like when you’ve never done it before. For several years people have been talking about missing the run-up in the market that started back in 2009.

There are a few things you should consider when the market is down. You should resist the urge to panic and realize that the market has a history of rebounding. 

Suppose the current situation turns into a more prolonged recession. In that case, we will all know someone who loses a job, files for bankruptcy, forecloses on a home, or severs a relationship due to financial reasons.

Living Through a Recession is Difficult

Stick to Your Long-Term Plan

If you haven’t pulled your money out now, it’s time to hold on for dear life unless you need the money to survive. History shows that the market always comes back.

All I know is the people who were hurt the worst in the Great Recession sold near the bottom of the market. So many people took money out of the market because they believed we’d never recover. They bought gold and silver after their stock portfolios dropped by 50% because they were convinced that our economic system would never recover. 

The truth is nobody knows what the market will look like in the next couple of months. If anyone did, they would be the wealthiest person in the world.

Help Others in Need

So how can you help others? Maybe purchase a local grocery store gift card for a family in need. Or spend money at local restaurants that choose to remain open. You could also check in with churches or other local organizations to determine who is approaching them with needs. 

So, what is our plan during this market downturn? Business as usual for now. I have no idea what the market will do over several months. More than likely, it will take us a while to bounce back from this, but who knows? The fact is that we’re investing for the long haul and don’t need the money for 10+ years. 

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