How To Take Advantage of A Suffering Economy

The Coronavirus pandemic has already done enormous damage to the world’s economy and there is no sign that the end is in sight just yet. With the inevitable global recession that could well be the worst in over a hundred years, many people are worried about their financial situation. But there are real opportunities during a recession and with careful planning you can make a lot of money. This article is a guide to how to take advantage of a suffering economy.

1. The Stock Market

The number one opportunity that you have during bad economic times is with the stock market. When the stock market drops it means that  everyone has lost confidence in it, but it is important not to be too consumed by the numbers and ask yourself about what has actually happened. When the markets drop 30% does that really mean that Google or Apple have really lost thirty percent of their value? Clearly they are not intrinsically worth thirty percent less than they were when the markets are up. It is just a measure of consumer confidence and historically within 36 months, we always get back up to our previous high. The global economy is cyclical and always makes a solid recovery so all the lost money comes back. 

Getting started in the stock market can be difficult but there are some great online courses available to teach you how to do it. The professionals of provide some information which may help new investors to become familiar with the stock market. Just as with property, the best time to invest in the stock market is when the markets are down because prices are very low. Often people are worried during a recession that the global markets could fall even further and so they talk themselves out of investments. Whilst it takes a lot of courage, investing in the stock market during a suffering economy is a great way to make money. 

2. Real Estate

Investing in real estate during a bad period for the economy can provide great long-term returns. The price of real estate can fall dramatically during recessions and so you can get some real bargains. It is important to remember that property is only worth what someone is willing to pay but during a recession, so few people are looking to buy homes that prices have to be set low.  During strong economic times, more houses are built than are necessary and so when the economy takes a downward turn, all these houses remain empty and unsold. Buying up this unsold property during a suffering economy is great because at some point it is inevitable that the economic situation will improve and you can sell the property at a great profit when the economy picks up again. 

Also, as many people are struggling financially and are unable to buy houses during this time, the rental market is really thriving. Build a property portfolio of quality homes to let. Young families are a great target market because they often do not have enough money saved to pay the deposit that is required to get a mortgage.

3. Buy Businesses

Now is a very interesting time in the business world because the baby boomer generation are starting to retire. Studies have found that only 13% of business owners from that generation have plans to sell their businesses while 87% are just going to let them close down. Many business owners don’t know what to do with those businesses so they are just going to let them go so take advantage during these bad economic times and start headhunting businesses. Look for businesses that have a great track record of success but where the management team is retiring. 

Then also working with a local broker such as Truforte Business Group, experts in Sarasota businesses, can provide valuable insights into the regional business landscape. They have a deep understanding of the area and can offer expert advice on selecting the right business for your needs. Furthermore, their local connections can prove invaluable during negotiations.

They may just be planning to let the business close if someone doesn’t take it over so there could be a huge opportunity to get a great business at a huge discount. There is also a big opportunity to buy businesses that are closing because of the Covid 19 pandemic as their owners cannot afford to keep them open. Whilst at the minute many people are in lockdown and so they don’t have any customers, this situation will not last forever and so now is a great time to buy up businesses to relaunch after the lockdown has finished.

Bad economic times can be very stressful as people worry about losing their job, not being able to afford their house and losing money that they have saved or invested. Few people want to take any risks during this time but there are real opportunities to make money during a suffering economy. Try out some of the suggestions in this guide and you can make the best of a bad situation.