Don’t waste a good downturn

Let’s start by getting some bad news out of the way.

Armed with a plethora of economic data, Prime Minister Lee Hsien Loong has warned that Singapore may face a recession in the next two years. This prediction seemed to ignite one of the investors’ greatest fears.

Recessions are normally seen as adverse events that cause share prices to crash and companies to go bankrupt. But amid the doom and gloom, there is always a silver lining. Poor economic conditions create attractive investment opportunities for the smart investor, and those who have their wits about them can tap these opportunities to make great long-term investment decisions.