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How to invest during recession?

Nothing is permanent.  The same thing applies to the market and human’s economy.  They have the bloom and the bare.  The market is an indicator for what is to come in our economy.

During recession, people can loss jobs or homes.  But then government will try to spend and hire to encourage an economy.  People still have to spend on necessity and health.  Financial institute will start to do well toward the end of recession because the rate is normally low and loan demand is increasing.

Early recovery, people actually do not really know whether the worst is still here, or is recovery on the way?    However, people are now used to the situation and have accepted it. Then they start to buy big items again, like appliance. Industries start to produce again.  Companies start to spend on technology to prepare for the next economic bloom.

Market top.  This is when the bank starts to raise their interest rates.  Good economic news starts to flow, but with some bad news first.  People start to recognize that the bad times have passed.  People start to spend money on travel and more luxurious items.  Raw material and energy producers do well because they feed material to industries.

Early Recession. This feels like a good economy just start.  But if we take a step back and take a good look, we may realise that the market has run up for a while.  The warning signs are everywhere.  People start to cut back on expenses, although they will t still spend money on food, drink and lifestyle items.  . The healthcare and utilities industries continue to do well here, as people still need to spend money on important expenses.

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