Posted on September 27, 2009 by Nayab Naseer

The recession provides a good investment opportunity provided once has liquid disposable cash in hand.

Recessions usually follow a stock market crash, and even good and strong stocks would be available in a discount. In additional, discount stores where more and more people with less disposable incomes flock to would see increased sales, making such stocks attractive buys. Recession proof businesses such as health care and others are also good buys.

During times of recession, the value of some investment such as property prices would go down and there would not be much buyers. Many investors make the mistake of selling in panic and then buying again at higher prices when prices start to rise. One needs o sell during recession only if one identifies a better investment opportunity that makes the present investment unattractive while considering the opportunity cost. In the absence of such an opportunity, it is better to sit through the bad times and wait for the market to recover wherein the lost value is most likely to be recouped.