< Education

Investing in the stock market in a recession

Investing in stocks can be a great way to grow your money over the long term, and this can be especially true during a recession.

Market recovery

While it's true that the value of stocks tends to go down during a recession, it's also important to remember that recessions don't last forever (the most recent two recessions lasted an average of 14.5 months), and the economy will eventually recover. When the recovery starts to improve, the value of stocks might start to go up again. This is called a "market recovery".

Case study

Imagine you're a detective trying to solve a mystery. You know that there's a treasure hidden somewhere, but you don't know exactly where it is.

Now, let's say that while you're searching for the treasure, a big storm comes and ruins the map.

In this case, the map is like the stock market, and the storm is like a recession.

It can also be a great opportunity

In other words, investing in stocks during a recession can be risky, but it can also be a great opportunity to find good deals on stocks that might go up in value when the economy recovers.

Useful Resources