A Recession Is an Opportunity

Gary North

A recession is a scary event. It can last for six months, and the aftermath usually lasts for years.

Before it happens, most people don't think about it. They forget that recessions happen regularly, and that they create fear.

This is why you should prepare now. This means the usual strategies: reduce debt, get into cash, be ready to tighten your belt at work and at home.

But a better approach is to think of a recession as an opportunity. Here are good things that happen in recessions.

1. It gets easier to hire competent people.
2. Your advertising money lets you leapfrog your competitors, who pull back.
3. You can buy a nice home from a frightened seller.
4. You can get better deals from negotiating.
5. You can buy stocks at low P/E ratios.

These are all really good things you can do, which you can't do at a comparable price during boom times.

So, if you prepare for a recession, it can provide unique opportunities for long-term profits.

When it hits, instead of being blindsided and paralyzed, you will overtake your competition.

The good news is the bad news will give you an edge.

But will you be ready to take advantage of these opportunities? I hope so.