What’s in a economic recession? Macroeconomically, it has great implications on the economic output and later stability in the market. To us, let’s be more pragmatic. If you have a stable job, all the best for you. If not, the issue for you is continuing employment.
Let’s look at it from what you can do, to build up your wealth. A recession to the investor is basically a fall in prices in the market. What it means is….SALE TIME! But it’s also time to take stock of how to best implement your investment strategy
My take is this….Everyone has their own favorite vehicle for investment. That does not mean the person can and must only play in that vehicle. There will be times when the vehicle of choice does not make sense. For me, this is a great time to buy stocks, with the market selldown of 20% over the past 4 weeks. Another couple more percentage and it would be time to enter. At the moment, however, the US property market still offers what I am looking for in my investment, perhaps better than what the stock market can give me for the moment. At this moment in time, I can safely say that there are 3 alternatives for me right now. Equities, Commodities and US/ UK properties. The US property market, at the moment, trumps everything else. If and when it recovers, I’ll probably move away from purchases in the market, into something else on sale. I wonder what that will be.
