Comments on: More on Why You Shouldn’t Change Your Investing Strategy During a Recession

By: Max

Max — Sat, 25 Jun 2011 04:31:24 +0000

An easier way of saying this is “buy low and sell high”. People get skittish about investing during a recession, but it’s probably one of the best times to invest because you can stand to pick up stocks for a fraction of th price.

You just need to be careful and diversify because while you can find companies for cheap, there’s a great chance of them going bust as well.

By: Jeff

Jeff — Thu, 17 Apr 2008 06:51:48 +0000

KMC:

I’m with you, 3% in 10 months is nothing to shout about. If you could reliably time the market you would move to bonds or TIPS and hopefully beat 3% — assuming everyone else wasn’t doing the same thing and pushing bond yields down.

I was suprised it wasn’t a negative return during recessions. We all have the intuitive sense that “recession = bad”. It’s a pleasant surprise that stocks continue to grow, although slowly.

Thanks for your comment.

By: KMC

KMC — Wed, 16 Apr 2008 11:42:39 +0000

I’m not so sure I agree. For one thing, it’s nothing to crow about if the market returns 3% and inflation is running 6-7% (as many believe it truly is now, regardless of what the government’s CPI says).

Is the stock market the best of bad options in a recession? Possibly. But there’s an argument to be made for investing differently in a recession.