Three things to do during a recession

August 20th, 2008

Despite how journalists portray a dampened economy, a recession (or at least a slow economy) is the perfect time to start new ventures, not pare back existing ones. Here’s three things that can be very lucrative if done during periods like now:

  1. Buy stocks – the old adage, “buy low, sell high” applies well when the stock market is doing poorly. Everything that goes up, must come down: that’s what is going on now; but everything will go up again. And down. And so on. The trick is to do the research to find stocks that aren’t aren’t doing so hot, but the company is doing fine, because those prices can go up.
  2. Start a new business – creditors are more reluctant to lend out their money, people are less willing to buy new products, and most of your friends will think you’re crazy. But starting now will mean you’ll be established for when things get better, for when the other saps who didn’t read this blog post start spending money again. The company I work for was started during the 1990-1991 recession and it’s doing perfectly fine thank you.
  3. Start some new hobbies – learn to play guitar, build of model of the spaceship from your favorite show, learn all about Korean culture, join the cast or crew of a community theater, attend slam poetry competitions, start a blog and write about all the crazy things that interest you. The idea is to begin doing new things – who knows, maybe you’ll find while doing some new hobby a great idea for a new business or some crazy new career that will make you happy.
So instead of battening down the hatches, use this period as an opportunity to take advantage of the situation and put yourself into a good position when things get better again – they always do.

Need something else to inspire you? Try The 4-Hour Work Week by Timothy Ferriss.

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