The Motley Fool's Recession Survival Guide

These days, it's nearly impossible to escape the word "recession." Even if we don't yet meet the official definition of a recession, our economy is showing many of the signs that indicate we are about to enter one -- if we aren't, for all practical purposes, already in one.

The picture looks bleak, doesn't it? The housing bubble that Wall Street's finest bankers and greedy lenders such as Countrywide Financial (NYSE: CFC  ) created has finally burst. Housing prices are on a downward spiral, and an abundant supply of real estate has left builders such as Pulte Homes (NYSE: PHM  ) wondering whether they'll ever get the chance to build again. Monstrous write-offs and tight liquidity at the likes of Lehman Brothers (NYSE: LEH  ) , along with the collapse of Bear Stearns (NYSE: BSC  ) , are the stories that have moved to the center of the media's attention. Consumers are reining in their spending habits, so that even major retailers like Target (NYSE: TGT  ) are suffering from slowing sales. And exploding oil and food costs are tightening margins at every food establishment from Starbucks (NYSE: SBUX  ) to Kraft (NYSE: KFT  ) .

It all sounds so scary. But in truth, a recession is a healthy and normal segment of our economy's cycle. It actually presents long-term investors with great opportunities. Having an optimistic outlook and buying at bargain prices before the economy begins to recover can lead to some of the greatest returns your portfolio will ever experience.

Join The Motley Fool as we help you navigate through a down market. From learning about the formations of a bubble to stocks you should be buying, this survival guide will arm you with all of the information you need to feel confident about your portfolio.

Your Recession Survival Guide:


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  • Report this Comment On April 02, 2009, at 3:43 AM, JaceX wrote:

    What surviving a recession means is different for everyone. It means something completely different for different person depending on their rank on the socio-economic ladder. Before recession is over, every person will think long and hard about sacrificing to survive this phenomenon. There are very few people that will not think about surviving a recession. But we have a lot of options to save money and at the same time do something productive and interesting. Why not try cultivating your own food. In this way you can produce the food you will eat and those results will be so much rewarding. You really don't need acres of land - you can plants in pots or a small patch a few feet square in your yard can do the trick. Also the age of practices of canning, and learning how to dehydrate your food can store this food that you grow for a long time. In the lieu of microwave, you could also learn to cook with a crock pot, or convection oven. Crock pots are great for stews, soups, and roast, everything but the kitchen sink meals, which will make the veggies stand out if you <a rev="vote for" title="Surviving the Recession, Episode 2" href="http://personalmoneystore.com/moneyblog/2009/03/26/surviving... your own food</a>.

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