Question: Where Should I Put Money In A Recession?

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?

Recession-Proof Industries

  1. Food and Beverage. No matter the state of the economy, people must eat.
  2. Retail Consignment. When cash flow is weak, people typically don’t buy new furniture, books or clothes — that’s a no-brainer.
  3. Information Technology.
  4. Repair Industry.
  5. Health and Senior Service Industries.
  6. Cleaning Services.