My country announced that it is in a recession, and i can imagine the awful images going through peoples' heads. The images that has to do with fear for the market, hoarding of money, bankruptcy and liquidations, retrenching and firing of staffs, house prices fall, life savings disappears and so on. While all this thoughts goes on in the mind of a lot of people, i thought about words from Warren Buffet "Be fearful when others are greedy and greedy when others are fearful" and Ronald Shaich "the best time to grow is in a recession" and i thought about is the recession a turmoil or an opportunity.
Recession can be a nightmare to so many people as things can be really bad and opportunity to earn might be very slim but I will be writing about how to go about the recession and make good profit while the recession hits hard.
When a country's GDP is low for about 6 months consecutively, then they declare a recession. The GDP is the gross domestic product which is a combination of all the flow of money within a country. So the reason why there will be a recession is because there are no money in circulation except for this, you can't really say as to why a country ever gets to recession but it starts with every penny not being spent and the value of currencies dropping.
It becomes very worrying this year because a lot of companies stocks have been doing well even through the pandemic, so one thing is for sure, the market will surely crash, the market will surely bounce back, the economy will surely go through a recession, and there will surely be a coming out of this recession. When the economy is booming and people see it as an opportunity to become richer, be very careful because the economy will crash in between.
At this point, you stop spending, you start saving and building up capitals, you start to avoid debt as much as possible because the trying time can get you into more debt if you aren't well prepared for it. In a society were money is the factor that keeps it going, a fall in it is a very detrimental.
At the time of a recession, it is best to invest back into the economy. A lot of people are saying the economy is crashing and when they are in dare need to sell an investment, they sell it cheaper. Never see a recession as a death sentence even though it is often though, see it as an investment opportunity.