Table of Contents
Recessions are historically the best wealth-building windows for long-term investors. When stock prices drop, assets go “on sale,” allowing you to lower your average cost basis and maximize returns during the eventual recovery.
Recession Strategy Checklist
- Maintain a robust emergency fund (6+ months of expenses) so you never have to sell investments at a loss.
- Dollar-cost average (DCA) consistently; do not try to time the absolute bottom.
- Focus on high-quality companies with strong balance sheets and low debt-to-equity ratios.
