Instead, you should hold the positions that you entered as long-term investments.
That said, if you have cash to invest, you may want to consider buying recession-friendly sectors such as consumer staples, utilities and health care.
Where do you put your money in a recession?
8 Fund Types to Use in a Recession
- A Strategy for Any Market.
- Federal Bond Funds.
- Municipal Bond Funds.
- Taxable Corporate Funds.
- Money Market Funds.
- Dividend Funds.
- Utilities Mutual Funds.
- Large-Cap Funds.
Is it better to have cash in a recession?
Liquidity. Your biggest risk in a recession is the loss of your job, if you’re still employed or semi-employed. If you need to tap your savings for living expenses, a cash account is your best bet. Stocks tend to suffer in a recession, and you don’t want to have to sell stocks in a falling market.
What businesses do well in a recession?
- Food and Beverage. No matter the state of the economy, people must eat.
- Retail Consignment. When cash flow is weak, people typically don’t buy new furniture, books or clothes — that’s a no-brainer.
- Information Technology.
- Repair Industry.
- Health and Senior Service Industries.
- Cleaning Services.