Is It Safe to Invest During a Recession?

Here's your guide to navigating recessions the right way.

By Matthew Frankel, CFP – Updated Aug 4, 2025 at 10:59 AM | Fact-checked by Frank Bass

Key Points

Invest during recessions with a long-term mindset and stable emergency savings.
Avoid panic selling; instead, use dollar-cost averaging for investments.
Select quality stocks or funds, focusing on industries less affected by recession.

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To sum it up, it can be a great idea to invest during a recession -- but only if you're in a strong enough financial position to do so and only if you have the right attitude and approach. You should never compromise your near-term financial security for long-term gain.

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An infographic listing 10 numbered steps to take to prepare for a recession. — Preparing for a recession

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About the Author

Matt Frankel, CFP, is a contributing Motley Fool stock market analyst and personal finance expert covering financial stocks, REITs, SPACs, and personal finance. Prior to The Motley Fool, Matt taught high school and college mathematics. He holds a bachelor’s degree in physics from the University of South Carolina, a master’s degree in mathematics from Nova Southeastern University, and a graduate certificate in financial planning from Florida State University. He won a SABEW award for coverage of the 2017 Tax Cuts and Jobs Act. He is also regularly interviewed by Cheddar, The National Desk, and other TV networks and publications for his financial, stock market, and investing expertise.

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Matt Frankel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Walmart. The Motley Fool has a disclosure policy.