3 ms·
Yes, a recession will happen. So will the post-recession recovery period. It’s going to hurt. 98 out of 100 stocks during the 2008 Great Recession lost people m
by rayshan 7y ago
Yes, a recession will happen. So will the post-recession recovery period. It’s going to hurt. 98 out of 100 stocks during the 2008 Great Recession lost people money. At the same time recessions don’t last long [1], and it’s a great opportunity to buy, whether it’s stocks or homes.
I was just looking into the last recession, and I found that the market was wrong, and overreacted about a lot of stocks during that time [2]. Even AIG, the villain that caused the crash and was bailed out by the government, was one of the top performers during the recovery.
Try to have a balanced approach - cash + defensive assets (like gold and household staple stocks) + not selling all your stock.
[1] 2008 Great Recession: 1.5 years; 2000 dot com bubble: 8 months; early 1990s recession: 8 months
[2] https://shan.io/writing/learnings-from-the-2008-great-recession/#the-market-is-often-wrong-about-companies-during-a-recession https://shan.io/writing/learnings-from-the-2008-great-recess...