Stock prices generally decrease before and during a recession, making it an excellent time to invest. Buying as stock prices fall pays well in the long run if you continue to dollar-cost average into your 401(k), IRA, or other investing accounts.
What should you buy in advance of a recession?
Take a look at the suggestions we’ve made below.
Protein. These food items are high in protein and can be stored for a long time.
What do people put their money into during a downturn?
A approaching recession shouldn’t scare you if you’re investing for the long haul. To take some profits off the table, you might wish to sell some stocks. However, selling when prices are low should not be your primary strategy. You might assume you’ll get back in when prices stop falling, but a bottom can’t be called until it’s crossed.
You should instead treat the positions you took as long-term investments. However, if you have funds to invest, consumer staples, utilities, and health care are all recession-friendly industries to explore. Stocks that have paid a dividend for a long time are also an excellent choice, as they tend to be well-established businesses that can weather a downturn.
What should you buy right now?
- Pasta! Our favorites are linguine, fettuccine, spaghetti, penne, and rigatoni in all shapes and sizes. Purchase a large quantity; it will last a lifetime. We’ll also get some tortellini and gnocchi, both frozen and refrigerated. Also, get some canned sauce.
- Food that has been canned. Are you familiar with this one? To make this dish, you’ll need canned tomatoes, canned coconut milk, and canned beans (black, pinto, refried, garbanzo). Find out more about the canned items we keep in our pantry.
- Eggs. They also have a long shelf life and are extremely versatile. A six-minute egg transforms even the most basic foods (such as a piece of toast) into a meal.
- We’re stocking up on fresh vegetables that last: cabbage, cauliflower, potatoes, and sweet potatoes. We’re going to get some bell peppers and mushroomsthey won’t last forever, but they’ll do for a while, so we’ll simply use them up first. Carrots can also be kept for a long time if peeled and stored in water in the refrigerator.
- Frozen vegetables We wrote a whole post on it, but for the sake of this grocery list, we’ll just repeat our favorites! We’re going to load up on frozen broccoli, kale, and spinach.
- Alliums! There’s a lot of garlic and onions in this dish. Shallots, onions, and ginger are also used. All of this will last for a long time. A word of advice: don’t keep them in the fridge. Put them in a dish on your counter and keep them there.
- Spices and seasonings This is a must. These are the magical ingredients that will add lift, sunlight, and brightness to your pantry meals in the coming weeks. Stock up on Italian seasoning, curry powder, chili powder, cayenne, red pepper flakes, Better than Bouillon (one tiny jar takes up a fraction of the space that a carton of stock does), cumin, smoky paprika, red curry paste, garlic powder, onion powder, and fresh herbs (keep parsley and cilantro in a bit of water on the counter to make it last). You may learn more about our five must-have spices by clicking here.
- Condiments. Make sure you have soy sauce, vinegars, mayonnaise, ketchup, and Dijon mustard on hand. In our house, too, sambal oelek chili paste is a requirement.
- Butters made from nuts. Although peanut butter merits its own category, we’ll also be stocking up on tahini.
- Fresh and frozen meats are at the top of our list, including steak, frozen chicken breasts and thighs, frozen sausages, frozen bacon, frozen ground beef, and frozen ground chicken. If you want a more comprehensive list, you can find all of our favorite frozen meals HERE.
- Fruit. Oranges, bananas, apples, lemons, avocados, and limes, as well as some frozen fruit! Blueberries, frozen, are at the top of our list.
- Treats! It’s almost as significant as the others. We’re stocking up on chocolate chips, flour, sugar, butter, cocoa powder, oats, raisins, and all of our other favorite baking ingredients, because if there was ever a time when frequent cookie baking and random just-for-fun cake-making were required, it’s now!
What should I buy in case of inflation?
With food prices, there are a few simple strategies to prepare for inflation. I believe it is prudent to begin preparing now and purchasing items before you require them. This is what I’ve been concentrating on recently. In its most basic form, a stockpile is just that.
Assume the price of toilet paper increases by 15% this year. That means the $10 toilet paper package you buy every month will soon be $11.50. That’s an extra $18 each year merely to buy the same toilet paper you were buying before. If you multiply that scenario by a number of things increasing in price, you’ll see a significant influence on your budget.
What if there isn’t any inflation? You’ll still be prepared and won’t have to purchase some of these products for a while. Because costs aren’t going down, you won’t lose anything. They may or may not increase at the greater rates predicted by some. If the hyperinflation predictions come true, you will have saved money for your family by purchasing items ahead of time while we wait for inflation to return to more normal levels.
“Buy one now, and two later,” as the old adage goes. Never let yourself get to the end of your food supplies.
Always be on the lookout and purchasing ahead of time. When you come across a good offer, buy as much as you can, especially non-perishables.
Personally, we are relocating funds from other sections of our budget in order to focus on purchasing some additional items right now. You should think about doing the same.
Are you trying to figure out what to buy before inflation? Here are a few essentials to stock up on before inflation kicks in.
Build a stockpile of non-perishable goods.
This is one of the most effective methods for anticipating inflation. Now is the time to stock up on items that will not expire or spoil. When I uncover good prices, I usually focus on establishing a food stockpile. Right now, I’m concentrating on accumulating a non-perishable food supply.
Build a stockpile of things you use regularly.
Expand your stockpile in the same way as before, focusing on the items your family utilizes on a regular basis. Don’t think about eating just yet. Concentrate on toiletries and other items that you use. Don’t buy goods you won’t utilize because it’s a waste of money. Consider stocking up on these items before inflation sets in.
Build a stockpile of foods your family eats.
The perishable products that your family consumes on a regular basis are the last section of your stockpile that you should concentrate on.
Purchase extras of the food items you use whenever you notice a good offer. If you have extra freezer space, concentrate on buying meat when you can get a good deal.
When it comes to canned goods and other packaged goods, buy only what you’ll use before they expire.
If you’re wondering what food to stockpile before inflation rises even further, consider the following:
Can you save a few dollars this week to purchase an extra roll of toilet paper? Or can you find some additional cash to buy a few extra diaper packages? Is it possible to buy four containers of dish soap instead of one? Keep in mind that anything you purchase now will assist you in planning for the future.
I just produced a printable PDF called “The Quick Start Guide to Building a Stockpile on a Budget” if you want to learn more about stockpiling. It’s jam-packed with useful hints, checklists, and more to help you create a stockpile even as inflation rises! More information can be found here.
Who profited from the 1929 stock market crash?
In the uncontrolled stock market of the 1920s, Joseph Kennedy, Sr. made a fortune, thanks in part to insider trading and market manipulation. The patriarch of the Kennedy family went on to become a Hollywood magnate thanks to his Wall Street wealth. He combined cinema firms that turned out low-budget films, made them more efficient, and sold them for large profits after purchasing a failed Hollywood studio in 1926. According to the National Park Service, by the time he left Hollywood in 1931, Kennedy had earned $5 million in the film industry.
During the 1929 stock market crisis, most investors saw their fortunes vanish, while Kennedy emerged richer than before. He sold most of his stock holdings before the crisis, believing Wall Street was overvalued, and earned even more money by selling short, betting on stock prices falling.
According to Kennedy biographer David Nasaw, speculations that the 35th president’s father was a bootlegger during Prohibition were untrue. Kennedy’s fortune grew from $4 million in 1929 to $180 million by 1935, thanks to a lucrative contract he struck in the closing days of Prohibition to be the sole American importer of Scotch whisky and gin produced by British distillers such as Dewar’s and Gordon’s.
Who profited during the Great Recession of 2008?
Warren Buffett declared in an op-ed piece in the New York Times in October 2008 that he was buying American stocks during the equity downturn brought on by the credit crisis. “Be scared when others are greedy, and greedy when others are fearful,” he says, explaining why he buys when there is blood on the streets.
During the credit crisis, Mr. Buffett was particularly adept. His purchases included $5 billion in perpetual preferred shares in Goldman Sachs (NYSE:GS), which earned him a 10% interest rate and contained warrants to buy more Goldman shares. Goldman also had the option of repurchasing the securities at a 10% premium, which it recently revealed. He did the same with General Electric (NYSE:GE), purchasing $3 billion in perpetual preferred stock with a 10% interest rate and a three-year redemption option at a 10% premium. He also bought billions of dollars in convertible preferred stock in Swiss Re and Dow Chemical (NYSE:DOW), which all needed financing to get through the credit crisis. As a result, he has amassed billions of dollars while guiding these and other American businesses through a challenging moment. (Learn how he moved from selling soft drinks to acquiring businesses and amassing billions of dollars.) Warren Buffett: The Road to Riches is a good place to start.)