Whenever an economic crisis hits, the media is filled with bad news, somber predictions, and all the reasons why people would soon be facing inevitable financial hardship. However, haven’t we ever noticed that when the economy takes a turn for the worse, some investors are as giddy as if it was Christmas morning? The thing is, a bad economy can be good, if you look at it the right way. Below are the 3 reasons why a bad economy can actually be good for you.
1. Low Mortgage Rates & Cheap Houses - When the economy is down, it brings every industry down as well including the real estate market. Although this could be bad news for people who have already bought property, savvy real estate investors are already scouting around looking for that perfect deal. In a depressed market, it’s always easier to find properties on the cheap, plus mortgage rates are extremely low, raking up the savings.
2. Own A Business? Say Goodbye to Competition – A bad economy can be very difficult for businesses because everything slows down. Consumer spending is at its all-time low, but yet there’s still that perpetual need to keep the cash flow circulating. A struggling economy can make business owners paralyzed, and this is when you step in to “steal” the competitor’s consumers. Some businesses are just not ready to survive a recession, while others thrive in it. By the time the economic crisis is over, it’s evident which businesses made it or not. Just be sure your business comes out alive and ready to take on the consumers lost by businesses who went bankrupt.
3. Cheap Stocks – Whenever an economic recession ensues, this signals major buying time for those who are interested in investing with stocks. For the seasoned investor, economic crises are what get him the big bucks. Some investors even park their money and just wait till the market goes low. A bad economy is like a stock free-for-all. Buy low, sell high as they always say.
These are only some of the reasons why there’s always a silver lining when it comes to a depressed market. This can signal major discounts and sales on worthwhile investments in the long run.