4 Reasons Recessions Are Good For Consumers
Recessions get a bum rap. People lose their jobs, their homes lose value, their savings account pays peanuts, and the media predicts the end of the world on the hour. But there are several reasons you should welcome a recession, some selfish and some selfless. Let’s start with the selfish reasons you might welcome a recession. Tomorrow, we’ll cover how recessions are good for the economy as a whole.
Recessions Make Buying A Home More Affordable
Recessions are usually great times to buy real estate. Not only do real estate prices often go down during a recession, but mortgage rates typically trend lower as mortgage lenders compete with each other to attract scarce homebuyers. If you already own your own home, why not pick up a rental property or two amid the current market turmoil?
Recessions Encourage Retailers To Discount Consumer Goods
When money is tight, people buy less. It’s no surprise, then, that retail stores tend to offer tempting discounts on all kinds of consumer goods to entice consumers to their stores. In need of a new car? Wait until the economy hits rock bottom and you should be able to walk off the lot with all kinds of discounts, favorable financing terms, and dealer incentives.
Cheap Airfare And Hotel Deals
The middle of a recession is an ideal time to take the family to Disney World. Not only will you be able to find cheap airfare and reasonable hotel rates, you won’t have to deal with hoards of people like you would when business is booming.
Stocks Go On Sale
It’s been said stocks are the only thing in the world people only want to buy when they’re expensive and avoid when they’re on sale. But being an Intelligent Investor, you don’t think like that. You kick your savings into overdrive during recessions in order to buy more when prices are low. Over the long term, the disciplined investor who keeps buying during a bear market will reap enormous rewards.
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