by Michele Wilmonen

Created on: October 29, 2008   Last Updated: May 05, 2010

We are in a recession; there is no doubt about it.  If you were not knocked off of your feet from the housing bubble and have money to invest, now is the best time to do so.  Prices are low and companies are so desperate to make some sort of a sale that you have the upper hand when you are ready to buy certain items. 

++What should I do?

First of all, remain calm. Do not panic and sell all of your stocks. If you keep a level head, not only will you make it through, you could in fact profit from a recession. If you have a broker sit down with him or her and make sure that your portfolio is diversified. Diversified is when you have your money spread out across a number of different investments and not all in the same place. In other words, "don't keep all of your eggs in one basket". If that basket falls all of your eggs could break.

If you have the money, start buying stock in companies that have a strong business record. These stocks are going to be at great prices and the time to buy is during a recession when the stocks are at their 52-week lows. If you don't have a lot of money, but still want to invest, find penny stocks. These are stocks that are typically below 1.00 a share. You are going to want to keep you eyes out for strong companies whose stocks are taking a dip. Also grab these stocks fast; once a companies stock is under 1.00 a share for 30 days, they get delisted from the stock exchange.

++Buy a car

Most car companies are hurting so much right now that they are trying hard to make a sale. When a company gets into this position, again the buyer has the upper hand in the negotiations. Do your research on how much your trade is worth, what car you want, enough of a down payment to entice them and having your financing in line. Also go in with a friend or your significant other, when you have another person with you while you are buying a car, it will help you stand your ground during the negotiations. You will most likely walk away with your car and deal you wanted or possibly better then you wanted.

++Buy a house

Normally during a housing market slump it becomes a buyers market and it is a good time to buy. But, if you own your home you will be a seller also and you may not be getting what you want out of your own home. So really buying a house during a recession like this is beneficial only to people that are buying their first homes or are looking for rentals. However, I would stick to the foreclosure auctions at his time. I don't think that the housing slump is over yet and buying right now might get you into the same "upside down in your mortgage" trouble as everyone else is in.

++Bottom Line

Keep your wits about you and look for cheap stocks, cars and houses to make a profit.

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