Real estate
During a recession, people turn to fiscal conservatism. People tend to put off buying and selling of property during periods of economic downturn. This affects the real estate industry, as there is lesser demand in the market. The higher supply of houses for sale as compared with the low demand will forcefully reduce the selling prices of homes. As such, the recession has a positive impact on potential homebuyers. Mortgage rates will be lower due to changes in interest rates and lending offers more attractive because of the increased competition among banks.

Pick out survivors
Look towards industries that thrive no matter how the economy is doing. People always need to eat. People always need household supplies, even if they aren’t spending as much on them. They always need utilities. Invest in companies in these trades.

Under-priced stocks
Buy under-priced stocks of a company that is estimated to thrive during a recession. These will be companies that provide a product or service that is ‘needed’ rather than ‘wanted’. Also, since people spend less money during a recession and usually hesitate to put out cash for large luxury items, they will more than likely spend on accessories for items they already have. This can include video games, digital camera components, mp3 player accessories and more. Look to invest in these types of companies.

Value investing
Pick companies with low debt, steady growth and strong earnings. In order to choose the best stocks from a list of strong companies, look for those farthest from its 52-week high (it’s listed in the newspapers).
If you are able to leave your investments to grow over a five to 10-year period, it is pretty likely that you will earn a decent profit. Search for well-established companies that are sure to turn around and be stable in the long-term.