Is recession a good thing ? Interesting

[sv2007]

Following May's job report, there's more predictions of recession coming from wall street.

I'm wondering, is it really such a bad thing? Especially for folks on forums like this (i.e. savers). I think it depends on whether you are working or not.

If you suffered greatly during the last couple recessions/bubble bursts, then please don't read this the wrong way. I'm only writing what's on my mind from my own experience.

The past 2 crashes of 2001/2 and 2208/9 actually (I think) is what built most of our wealth. Sure, our investments took a beating (down 40-50%), but we bought lots of cheap assets too. Once recovery came, we were way better than pre-recession.

So, while working, we were never too worried about recessions. In fact, vacations and many hobbies become much cheaper and it was truely good times.

But I'm retired now and worry a bit about recession. Although we can probably live off our investment returns still, it means we won't be able to buy as much cheap assets so the recovery will be slower.

Any thoughts?

[Thrif-t]

I think it depends where you are in life if a recession is good or bad. Personally for us, the last recession was good as we still have a ways to go before retirement and we plowed a lot of money in the stock market when it was down and made a lot on the way back up. We have stable jobs that weren't affected by downturns in the economy so that was another plus for us. And we took some amazing family vacations that we couldn't afford to do now with up tick in price. So I guess recessions depend on your own personal circumstances if they are good or bad.

[Fishindude77]

When times are tough, some good buys can be had for those who have cash on hand to invest or make purchases. You can usually get some good real estate deals.

If you are too heavily invested in the market you can get hammered, as many of us saw with our 401K's and investment portfolios in 2008.

[feh]

Any thoughts?

Just one - ignore the financial porn. One disappointing jobs number and we're headed for recession? Please...

They need people to click on links. The US economy is just fine.

[Nika]

If you want vacation deals, there are plenty to be had right now in South and Central America if you are not pregnant or plan to be pregnant. I am pregnant, otherwise I'd be all over those half empty luxury hotels and cheap flights.

If you are planning to buy a vacation property - lake, ski, beach, etc... recession is the only right time to do it. The price fluctuation is incredible. In fact, if I had lots of money, that's what I would do - buy vacation property in recession and sell when times are good. One needs discipline to do that though.

[Fishindude77]

If you are planning to buy a vacation property - lake, ski, beach, etc... recession is the only right time to do it. The price fluctuation is incredible. In fact, if I had lots of money, that's what I would do - buy vacation property in recession and sell when times are good. One needs discipline to do that though.

This is exactly what I did in 2009.
Pricing on lake homes where we like to vacation as about as low as I had seen it in recent memory so we bought one. Prices have not risen back up as quickly as I had hoped, but we are enjoying the place, so have no immediate plans to sell anyway. It should be a pretty solid long term investment.

[Koolmagicguy]

The US economy is just fine

... they said, right before the crash...

[Nutria]

... they said, right before the crash...

They also said it not right before "the" crash.

[sv2007]

Just one - ignore the financial porn. One disappointing jobs number and we're headed for recession? Please...

They need people to click on links. The US economy is just fine.

Not completely believing wall street as history's proven that you can't predict recessions; just realized that after each recession, our financials come out much better than going in.

Although I also don't completely discount the predictions (after all, several analysts are calling based on more indicators than just job report, although the job data sounded like a significant indictor for most).

Remember, 2007? It kind of went pretty suddenly. One thing I've learned is that there's definitely a boom/bust cycle despite our gov's best intentions. So I do follow somewhat and move into some defensive positions, maybe I'll make less but possible the up side might be worth it.