Its recession most people are free as there is nothing to trade or do. Many may have witnessed salary cut and so tend to spend less on luxury and comfort and worst case is that they have lost their jobs.
But one should not underestimate these recessionary times as they can last longer than the good times.
Is the US housing bubble responsible for all this mess? The answer is yes to some extent but there is no use sitting and crying.
Here are a few things you can do during recessionary times:
- Firstly don’t see Business news channels all the time and also be away from stock tickers (Do not watch stock prices every now and then).
- Keep your mind running, plan out new ideas. Research on stocks which you think are a value buy and accumulate them. Remember buy when others are selling and sell when others are buying. (This is what Warren Buffet says)
- Don’t sell just buy. Your long awaited bluechip stocks would be available at a dirt cheap rate.
- Don’t over trade – Some times even some quantity of day trade can indulge you a huge loss. So be careful and trade when you are confident.
- Games can help – Play Poker and get some cash or else play some online game on stock markets say for example Money Bhai Investor from MoneyControl.com.
- Read Books – Reading books can help you figure the economic situation at macro and micro level. (Check out few good books on investing)
- Save fuel. Rather than using your car or bike use public modes as it is cheap and economical. In fact you are just not saving fuel but you are saving your precious money.
- At the end be away from loans. If you already have taken loan which is yet to be re paid don’t take a fresh loan again.
The logic is simple: Save & Invest more and spend less!
I came across an awesome report by PWC – Growth Strategies in
Recessionary Times (Read it here) (It’s a PDF File)