How to Invest During a Recession

With inflation at levels not seen in 40 years, stocks falling into bear  market territory, and the U.S. economy contracting for two straight  quarters, investors were searching for strategies to invest during these  volatile times.

Looking at your brokerage or 401(k) account may cause a sense of dread when the economy or stock market looks to be on shaky footing.

Investing Strategies for a Recession

Dollar-Cost Averaging

Dollar-cost averaging, simply put, is a systematic way of investing a  fixed amount of money regularly. It’s often used to describe the way  most people invest, on a paycheck-by-paycheck basis, through workplace  401(k) and 403(b) plans.

Buy and Hold

By buying and holding, investors believe that they are likely to earn  long-term investment returns despite whatever short-term market  volatility may come their way. They think an extended time horizon  allows them to ride out short-term dips in the market.


Investors try to gauge how close or far they are from their goals  because your time horizon determines how you invest. For instance, a  younger investor may have a portfolio that’s heavier in growth stocks  and lighter when it comes to bonds and cash.

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