What are some effective investment strategies during an economic recession?

What are some effective investment strategies during an economic recession?

During a recession, consider defensive stocks, bonds, and dividend-paying investments. Diversification is key.

What are defensive stocks?

Defensive stocks are shares in companies that tend to remain stable during economic downturns, like utilities and consumer staples.

Should I invest in gold during a recession?

Yes, gold is often seen as a safe-haven asset during economic uncertainty, as it tends to retain value.

How can I diversify my portfolio during a recession?

You can diversify by including a mix of asset classes like stocks, bonds, real estate, and commodities to reduce risk.

Are there any specific sectors to avoid during a recession?

Yes, sectors like luxury goods and travel may struggle during a recession, so it might be wise to avoid them.