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Remember recessions are a normal part of the economic cycle and they happen on average about every five years. Recessions are also relatively short averaging a little over 10 months; we have been in one since October. Many people say that once you know your in a recession it is already over. In times like these I am reminded of a Warren Buffet quote "when people are fearful, I am greedy"
The reality is that for the long term investor times like these can be a very good time to add money. By the time we wait until the economic outlook is "more positive" we will miss a big rebound.
Some stocks that I like right now:
ABK: AAA rating affirmed last week, beaten down big time,
AIG: One of the worlds largest insurers, at or near lows for the year had some negative news a few weeks back; market overreacted a bit.
DHI: U.S. largest homebuilder; obviously an industry that has had some troubles over the last couple of years. Very strong balance sheet and should be able to rebound nicely when outlook improves.
DRE: One of the biggest REITS; much like DHI good company in struggling industry when markets turn around should be in good position. Also pays strong dividend.
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