Why This Finance Expert Says You Need to Invest During a Recession

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This could be a chance to get rich, according to Vivian Tu.

Key points

• Vivian Tu says you can get rich by investing during a recession.
• She explains that the rich invest when the market is down so they can get stocks and real estate at a lower price.
• If you’re not sure where to invest, she recommends index funds or a target-date retirement fund.

Vivian Tu, the financial influencer also known as Your Rich BFF, recently published a video about how you can get rich during a recession. Her advice is to do what the rich are doing and invest. It’s a simple strategy, but it’s also one of the smartest ways to come out ahead when the economy recovers.

Why Your Rich BFF recommends investing during economic downturns

The economy hasn’t been doing well lately, and many experts are predicting a recession in 2023. Economic downturns like this are stressful, and it’s natural to hope we can avoid them. However, Tu makes the point that these aren’t entirely a bad thing — in fact, they’re an investment opportunity that won’t come around very often.

As Tu puts it, “In your adult life, you’ll likely only see three to five major economic downturns, and they’re gonna be your biggest opportunities to build wealth.” That’s three to five windows where stock prices are much lower than usual. As seasoned investors know, this is the best time to buy.

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