Who suffers most? Individuals and business operating in the retail, travel and technology industry are most seriously affected. In addition, petroleum industry participants are affected by the low oil prices.
Spending on new personal electronics, family vacations and fashionable items is not on consumers’ minds when their income shrinks. Therefore, they are less willing to enjoy expensive meals in restaurants, or fancy water parks and luxurious hotel stays. Private schools will also see declines in the numbers of students as more people have to opt for free of charge education due to reduced income. In general, expensive and unnecessary stuff doesn’t work for businesses during a cycle of economic recession. Selling holiday homes can become a very hard task to complete.
On the other hand, even during economic recession one should continue to provide for his and his family’s basic needs such as food, medicine and clothes. This is why, investors choose defensive stocks from the healthcare, transportation and services sectors. Businesses focus on basics and strive to attract consumers with best deals. Outlet stores and discounts work well, and even in the real estate industry. After all, people will always need homes and there is no better time to buy one than when prices are lower and many property owners need to sell their assets due to various reasons.
The other thing that thrives during a recession is public work and support groups of different kinds. Many people have difficulties surviving hard times and most suffer from lack of motivation, depression and other mental or spiritual conditions. Such people should seek out to others and, therefore, certain group activities may flourish.
If you are a well-off individual, you should consider how to benefit from the economic recession as there will be plenty of opportunities to acquire income-producing assets at bargain prices.
However, if you are not yet a “well-off individual”, the only option you have is to adjust to the current economic recession and to restructure your personal lifestyle to fit into the new reality. An interesting fact of note is that small businesses started during recession cycles proved to grow stronger when the cycle turns around.
Before all, open your eyes to the reality of life and take care of yourself. Good luck!
