Managing Investments In A Recession

Sep 25 • Finance • 438 Views • Comments Off on Managing Investments In A Recession

It can be difficult managing investments, especially during times of recession. However, if you want to reduce the risk to your money, there are some steps you can take to make your investments safer.

Invest in food
While people may be less likely to buy luxury goods during a recession, there are some things that never see a drop in demand. Investing in suppliers that deal in food staples such as bread, rice, corn and sugar is one way to protect your money during a recession.
Investing in food commodities does not require a large initial investment and can promise large returns, due to the constant demand.

Invest in precious metals
People may buy less jewellery during a recession, but there is always demand for precious metal. This is also less likely to lose value during a recession, when compared to currency. Buy gold bars during a recession. They are likely to retain their value, while currency may not. You may also want to invest in gold mining operations.

While demand for jewellery may fall, there is always demand for precious metals from automobile manufacturers and other technology developers. If this is a new type of investment, you should research the market first and consult with an expert.

Invest in property
During a recession, people tend not to buy homes and demand for rental properties increases. You can make money by buying property when it is not in demand and renting it out. While the value of the property may fall during a sustained recession, you will have a guaranteed income from the rent. Once the market stabilises, you can sell the property for a profit.

Of course, there is a lot you should remember if you want to buy a property to let. You should research all your responsibilities before you lease out a property. Also, remember the risks. If you don’t find a tenant, you could lose money with property investments.

Invest in foreign currency
If other countries are unaffected by the recession, you can protect yourself by investing in overseas currency. Money in your own currency may lose value during the recession, so you should sell this and buy currency from an economy that is still strong.

By studying the foreign exchange rates, you can make a lot of money by buying and selling foreign currencies. But, again, you should make sure you thoroughly research the currency market before you invest, as there is an element of risk with any investment.

A recession can damage your investment, and many people have lost money due to economic recession. However, it does not have to be like this. By managing your investments wisely, and investing in areas you may not have considered in the past, you can continue to make a return during a recession.

This article is brought to you on behalf of Emanuel Arbib of Integrated Asset Management – visit his blog for more information about investment.

Image courtesy of 401(K) 2012 – http://www.flickr.com/photos/[email protected]/6355351769/sizes/m/in/photostream/

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