Toronto’s best mortgage brokerage, Cannect Home Financing, outlines 5 ways you can make money during a recession. Investing during uncertain times can be scary, but when done properly and with the right research, there are still opportunities to make money. Always make sure you carefully evaluate the options and think about your specific goals and time horizon. Have a listen to the semi-centennial episode to hear them!
Buying Good Stocks
A lot of stocks have taken a beating over the last year, but some of these companies are still very profitable and will come out of this recession strong. Even some of the bigger names like Amazon and Meta are down over 50% from their all-time highs. This is one of the most fundamental rules of investing: buy low, sell high!
Investing in Properties
If you can handle the increased carrying costs facing real estate investors today and have a long term time horizon, similarly to buying good stocks, this is a good time to buy that property you’ve been eying at a discounted price.
Investing in Cannect MIC
Cannect Mortgage Investment Corporation has been preparing for tough times like this since inception. We motivationally align borrowers and investors by lending to good borrowers at a conservative LTV that have a probable and reliable exit strategy from the loan. This has resulted in a consistent return for our investors over the last ten years.
Shorting the Market
Market prices and dividends have historically yielded a positive return, but if you own stocks, real estate, or other market-correlated assets, shorting the market using puts or other investment methods can act as a hedge for your overall market exposure. It is also just a good way to make bets on short-term market downturns.
Starting a Business
A lot of it comes down to the idea, startup costs, and execution, but starting the foundations of a new business during a recession can allow it to thrive when the economy turns around again.
Marcus also goes into the importance of investing in yourself. Whether it is going to school or starting a business, a recession is a great time to make an investment in yourself. It’s one that will always pay dividends.
