Twenty five benefits of the economic recession

Titian Gal

Found this and thought I'd share:)

These are twenty five benefits of the economic recession. Any worsening of economic conditions will only magnify these positive aspects. Ignore the doom and gloom. These are times of great opportunity. Here is why.

Shares of great companies are dirt cheap. Now it's the best time to invest.
Many rental property trusts with stable cash flow and high dividends are low priced for investors.
Industrial assets, such as second-hand machinery, can be purchased at deep discounts. Those assets can be immediately put to profitable use in growing economies like China.
Lower rents have reduced the cost of re-locating to take up a better job.
Studying has become cheaper and there is an increasing number of choices.
A lower valuation of assets makes easier to discard past mistakes, to throw away what does not work, and to move on.
If you live in a country with a rapidly depreciating currency, you can make good profits by simply moving your savings into a hard currency.
You can enjoy deep discounts in holiday packages.
Less capital is required to start up a business. If you are planning to rent retail space, you can get two months for free in some depressed areas.
Travelling abroad, specially for a long-term stay, has also become cheaper. This is the ideal situation for taking up a job in a foreign country or for learning a new language.
An economic recession educates children in the values of self-reliance, perseverance, and simplicity.
If galloping inflation replaces depressed prices, you can benefit by investing in precious metals.
A reputation of honesty and reliability becomes especially valuable in difficult economic times, since customers are unwilling to try out new suppliers.
Fancy, artificial approaches will be replaced by modesty and efficiency. This trend will add value to the economy and to our lives.
Less consumption means less distractions, allowing you to concentrate on what you do best.
Slow sales allow time for reading, reflecting, and establishing your optimum strategy for the future.
If your purchasing power is stagnant, you have no longer a reason to hang on to an occupation that does not fully satisfy you. Barriers for change have been lowered.
Restaurants are cheaper. This is the best time for social activities, meeting new people, or joining clubs or associations in your areas of interest.
Some businesses can be acquired for little cash. If you are willing to take the step, this is a great time to take over a business cheaply.
During an economic recession, media noise becomes overwhelming. Rationality in your professional and private life becomes even more valuable.
Erasing personal mistakes has become cheaper. If you are considering divorce, you could save some money now.
Having the right personal habits (such as saving regularly) becomes even more profitable in an economic recession.
Other people's mistakes are reported daily all over the place. This is the perfect time to learn from them and teach your children.
The dark side of false heroes has become even more apparent these days. This is a great time for reinstating rational values.
An economic recession multiplies the value of a long-term vision in any endeavour. Time can grow today's cheap investment or training into a great future success.

SkepticOne

Great minds think alike.

Titian Gal

This guy is very inspiring read this also if you're like minded. I'm so fed up with all the recession doom & gloom - it's good to look at it from another angle

amacca

"If galloping inflation replaces depressed prices"

Know that this was not the thrust of the original post, but Ive been thinking about it lately. The thought of no one valuing cash and prices of things doubling, tripling overnight etc is frightening.

Would you have an opinion on how likely this is, presumably we are relatively well insulated given the fact we have the euro.

Or is really all that much of a house of cards?

MG

Reason No. 26 - I have made a small fortune out of it:)

johnnyskeleton

Titian Gal wrote: »

Shares of great companies are dirt cheap. Now it's the best time to invest.
Many rental property trusts with stable cash flow and high dividends are low priced for investors.

That's very bad advice. First of all, these great companies have lost share value for a reason, and I bet you'd be kicking yourself if you had said "Anglo shares for 22 cent, that's a steal" the day before they were nationalised.

Equally with the rental property trusts - show me one rental trust with a high yield and I'll put my money in it (provided there is no other funny business in it). But I don't think there are any of those about, certainly not in Ireland.

The rest of the points are just fluff. If you really are sick of the recession doom and gloom, then don't look at economics. Watch an upbeat rom com instead.

Titian Gal

Wow. Mr Skeleton you need to lighten up. Go do something that makes you happy. Watch an upbeat rom com or something.

johnnyc

Titian Gal wrote: »

Found this and thought I'd share:)

These are twenty five benefits of the economic recession. Any worsening of economic conditions will only magnify these positive aspects. Ignore the doom and gloom. These are times of great opportunity. Here is why.

Shares of great companies are dirt cheap. Now it's the best time to invest.
Many rental property trusts with stable cash flow and high dividends are low priced for investors.
Industrial assets, such as second-hand machinery, can be purchased at deep discounts. Those assets can be immediately put to profitable use in growing economies like China.

sorry to burst your bubble china and the rest of the world aren't growing,when u talk about china its an exporting country where do all there goods go to usa,europe and wait a minute those countries are in recression/depression.

johnnyskeleton

Titian Gal wrote: »

Wow. Mr Skeleton you need to lighten up. Go do something that makes you happy. Watch an upbeat rom com or something.

Watching an upbeat rom com will only ruin 2 hours of your life. Following that guy's advice could well lose you money land you in massive debt and could equally worsen the overall economy if everyone were to follow it. I think the best way to look at economics is from a neutral, not an optimistic or pessimistic point of view.

Diarmuid

johnnyskeleton wrote: »

That's very bad advice. First of all, these great companies have lost share value for a reason,

some have, a lot haven't. However I'll take Buffetts advice over anyone elses.

johnnyskeleton

Diarmuid wrote: »

some have, a lot haven't. However I'll take Buffetts advice over anyone elses.

I agree with you, insofar as looking at the risk/benefits of each individual company is a much better strategy than following a general statement as to whether you should buy or sell stocks.