Top 5 Reasons Recession Means Opportunity
Doom and gloom make for great headlines, but you must look for opportunity at all times to get ahead. We’ve been taught to buy low and sell high, yet the media would like you to think that a recession means you should stay home and hibernate. Not so, now is the time to buy and act. Take advantage of the low prices. Keep your checkbook at home when things turn around, right now there are bargains to be had. Buy low, sell high.
Affordable Homes – As home prices cool some, incredible bargains can be found. From foreclosures to “do not wanters”. The downturns on home values are temporary and buying low today means you will stand to make more money as home prices rebound. Recessions are temporary so buy low and sell in the next real estate upswing and profit.
Low Mortgage Rates – The recession will not directly mean lower rates. We still have historically low rates available right now to buy a home. You need a couple of percent to put down, but great rates are available. Use those great rates to buy a home today and laugh when people tell you what they paid for their house and the interest rate they are paying a couple of years from now.
Great Consumer Deals – Retailers need to make sales and during recessions consumers often leave their check book at home. Delaying large purchases. Get yourself that flat panel TV, or have some remodeling work done at the house (contractors need business as well). Buy one, get one promotions, gift card with purchase. We have all seen these deals. Use them to your advantage.
Inexpensive Stocks – Companies that sell consumer staples like tooth paste, toilet paper, or interestingly alcohol do very well during recessions. Companies that sell “optional” items like cars, televisions often have less than stellar performance during a recession lowering the value of their stock. Buying and holding for the long term can create some great returns for your portfolio. This recession like all others will turn around and stocks will rebound like the rest of the economy.
Great Vacations At Bargain Prices – Vacations are something that is quick to come out of the family budget when times are tight. The rooms are still there at the hotels and the seats still on the planes. This can mean greater availability at your favorite spot, and a cheaper stay.
