While investing in stocks during times of recession, always look at the value they offer. Simply considering the stock price to make investment decisions is the worst strategy to apply during recessionary periods.
Looking to invest in stocks? Always try to understand how strong the balance sheet of the company is and how the customers are responding to the changing environment. Whether the environment is changing in favour of the company or against it is an important factor in deciding how the company is expected to perform during the recessionary period.
During a recession, many people run the risk of losing their jobs as their companies could be on the brink of bankruptcy and may be forced to fire people. If you feel this could happen to you, do make sure that you have enough funds to meet your expenses for at least six months. If you are financially secure and have excess money to invest, you may consider investing it in stocks.
What to keep in mind while investing during a recession?...