Becoming Recession Resistant and Investing in the Stock Market Even Now

The economy is bad these days as anyone can tell. It is now time to become as recession resistant as we can, for now, and in the future as well just in case this happens again. To prepare we must first look at the problems that are currently making the recession so brutal. We must also look at past history so we have an idea of what will happen in the near future. The first problem that we have is simply high volatility in the markets that sell any type of product or service. The volatility of the markets can be seen in commodities market and especially in oil, which is a primary energy commodity. Oil has collapsed in price from all time highs, which shows how volatile and hard to predict these markets now are. The second problem is that most companies are literally receding and getting smaller by firing employees and suspending operations.

Despite these bad economic times, there has never been a better time to try and buy almost everything you see if you can afford to invest. The price of everything is going down almost everyday making it a better buy. No matter what someone says the price of something is like a house, or a business, you can almost always get them to take less as well. This gets me to my first rule of surviving recession, and that is no matter what price someone has for real estate ask for at least 5% less then the asking price. If you are buying a house or real estate the 5% taken off will help cushion you in case real estate falls anymore then it has. My second rule is to buy stocks constantly as much as you can, in the most SOLID companies that you can find. You have to start investing in companies that are the hardest to compete with, and keep buying them EVEN if they get cheaper. From history we know that even the worst recessions eventually end allowing the markets to rise again.

The things that you shouldn't do include trying to make a quick buck timing the markets, or investing to make a trade. You should be thinking that you are investing and buying businesses not investing in the stock market for some quick cash. If your are buying investments and thinking that you will flip them for a quick dollar you had better wait until this economic crisis clears, but for those that are patient and willing to hold, they will probably make a fortune in investing in the stock market but that's my opinion.

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