Opportunities During Economic Downturns?

[Sebas.tian]

Despite these challenges, do you think there are still opportunities during economic downturns?

Yes, there is no way the economic will be affecting everybody in the country because many people or companies use the inflation period to increase their products to be able to achieve huge amount of income from their activities. I think, some bitcoiners use the opportunity to purchased huge amount of Bitcoin few weeks ago when the price reduced for those that missed the opportunity last year to be among the holders that will achieve huge amount of income when the price increase higher in this period of inflation. Inflation is a something that can be control by the government, if truly they have the mind of the citizens in their hearts because it will not take the government anytime to order the financial institutions in the country to make more money available to be in speculation to delete the inflation to allow deflation to take place.

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[adaseb]

Generally in an economic downturn the ones with money are the ones that benefit.

Everybody else is pretty much jobless and they will not be investing their money into the sp500 stocks or crypto. Remember when Covid crash happened. Many stocks or crypto suffered maybe -25% losses in a single day. And many people were out buying toilet paper and rice instead of putting large sums of money into the markets.

Only the hedge funds made up ok, everybody else sold their crypto or stocks at a loss out of panic.

[Strongkored]

Despite these challenges, do you think there are still opportunities during economic downturns?

Of course, there are, and optimistic people will usually always find opportunities even in difficult circumstances, for example during the pandemic where many businesses closed due to bankruptcy but there are also those that are actually growing rapidly, this is what I see around me which can turn its business into a shop online and getting fantastic sales, indeed the scope is not too big because it is not the result of research and so on, but at least it can prove that difficult circumstances are not always a barrier for us to be able to find opportunities in terms of business and so on.

[Hewlet]

Are there any potential benefits that can arise from inflation, recession, or economic downturns? As they say, necessity is the mother of invention. We see an example when people in a country are  faced with very imports duty that individuals there become inspired to establish local businesses and initiate domestic production and start consuming locally as an alternative to imported goods. While this approach might prove successful in certain countries, others may encounter obstacles such as high operating costs and countless taxes on startups. This is a challenge that discourages local production. Despite these challenges, do you think there are still opportunities during economic downturns?

the different between the rich and the poor is basically the way they look at things at different circumstances. When the economy is bad, most people give excuses and make complains regarding why things are tough while others look out for opportunities in the midst of that.

During the covid, the economy was bad for so many but the ones that were able to make the best use of the period had their turning point during that period.

Economic downtown is just similar to Buying bitcoin during the DIP, the price of bitcoin is down at that time so you don't complain but you're actually accumulating at that period because you that after the way down it's only going up.

[naira]

Generally in an economic downturn the ones with money are the ones that benefit.

Everybody else is pretty much jobless and they will not be investing their money into the sp500 stocks or crypto. Remember when Covid crash happened. Many stocks or crypto suffered maybe -25% losses in a single day. And many people were out buying toilet paper and rice instead of putting large sums of money into the markets.

Only the hedge funds made up ok, everybody else sold their crypto or stocks at a loss out of panic.

Yes, that is the fact instead of looking for opportunities to take advantage of the situation during a crisis, perhaps we will prefer to try to survive by preparing all the basic necessities, food, drink, clothing, medicines, fuel and other supplies that will give us a longer survival time. The crisis that occurred during Covid made us learn a lot. If one day a more chaotic pandemic occurs again the main step is to have as much cash as possible, regardless of whether its value has decreased or not but it can still be used to buy supplies.

However, I do not deny that there are some groups who are taking advantage of the crisis situation to grow their wealth by investing in the health sector, especially medicines which are experiencing price increases. During the pandemic, we know who is truly able to survive and emerge with increased wealth.

[yhiaali3]

Investors, too, usually gain more profit from any product that they invest in if there is a productive sale during inflation. Take, for instance, the fact that you bought plenty of bags of salt in 2022 for $50 per bag, and now in 2024, one bag is selling for $150. That means you will earn $100 for each bag for as many bags you buy in 2022. That is a great profit for that investor.

I cannot call this a profit. It is true that you bought a bag of salt for $50 and then sold it after inflation for $150. In theory, you gained $100, but in practice you did not gain anything because the value of the currency decreased as a result of inflation, and therefore the value of $50 before inflation is equivalent to $150 After inflation.

It can be said that you have preserved the value of your money by purchasing goods, but in reality there are no significant profits because the value of the currency has decreased. In addition, as a merchant, you have to buy back salt to fill your empty warehouses, and you will be forced to buy it at the same price or a little lower, which means that you practically only gained a little, even though your money has doubled.

[dezoel]

The set of people that actually benefit a lot from economical downturn are the hoarders of either foreign currency or some commodities like agricultural produces. During recession this particular set of people earn more as they have hoard lots of these during its low price days and can simply sell at a higher price since the demand has increased. This are people that even pushes for recession in the countries.

I completely agree with that because I have seen and experienced this thing within my country. Retail giants, or even those who are running local shops and stores but have enough money, buy and hoard basic and necessary products that they know will be in demand when there is high inflation, and then they can sell those products at a high price and people will be compelled to buy because there is high demand and less supply, so they don't have much of a choice.

This is usually done on a higher level but people who are involved in this process from higher authorities will barely have their names surfaced and they only use their hired people to do everything and they get most of the money gained in this process while they pay pennies to those who do the whole work.

[JayTrain]

Yes, during periods of economic downturn new opportunities for innovation and business development arise.  For example, demand for alternative solutions can fuel the growth of new industries.  However, high costs and taxes can be a barrier to local production.

[iamsange]

Yes, during periods of economic downturn new opportunities for innovation and business development arise.  For example, demand for alternative solutions can fuel the growth of new industries.  However, high costs and taxes can be a barrier to local production.

Tax costs for local industries can actually still be reduced as long as the state has sufficient space to do so, as is usually the case when an economic crisis is hitting around the world. It will indeed be difficult to develop anything, although every country will continue to strive to provide its best policies to all parties in order to fight the economic crisis. Apart from that, collaborating with companies that are able to create new innovations and new opportunities is also very much needed when crisis conditions are ongoing.

[iv4n]

Despite these challenges, do you think there are still opportunities during economic downturns?

Yes, especially for those who have a lot of money already. During the downturns people are desperate and they sell valuables just to survive, those who have money are using this in their favor. So you just need to have money in order to make money.

Others who are making huge money during downturns are people who are not so ethical and moral, smugglers of all sorts, criminals... people who are ready to "walk over dead bodies". Many rich people around made their fortunes during some crisis, I guess that say everything.

Nice example:

https://twitter.com/arunpudur/status/1626513132809236480?lang=en

"I am basically there to make money, I can not and do not look at the social consequences of what I do..." George Soros

[mirakal]

Having economic downturns is actually a natural phenomenon as not all the time the economic condition is high and progressive. But behind this, there are still advantages of starting a profitable business idea. I think healthcare services might possibly work since most of the individuals most particularly the senior citizens will have a hard time living their lives with the current economic downturn.

And while dollar cost averaging is advisable when there is a recession or economic downturn, the it’s best to purchase some valuable assets or investments that will grow their value when the market progress again. Buy when it’s low and sell when it’s high, as simple as that. But in order to make it more profitable, have a good amount of capital to acquire huge amount of assets. That way, when the market has recovered, there will be  huge promising profits afterwards.

[Smartvirus]

Are there any potential benefits that can arise from inflation, recession, or economic downturns? As they say, necessity is the mother of invention.

Obviously this happens.
Coming home to a nation like mine, I recall having noted people in my locality taking advantage of the various occurrences that might have come with some adversities to benefit themselves.

On a global scale, the Covid-19 situation reminded us of our hygiene and created a market for hygienic items like hand sanitizers, nose mask and the rest of them.

Lack of cash in my locality pushed for a more cashless policy and a new brand of business like the buying of cash from people that uses point of purchase or sales machine. Where you just get your debit card run on their device, your given your value in cash and you pay a fee for the service.

For those who are able to look, they can see the opportunity there and utilize it. The issue is, don’t use it for an opportunity to exploit the people.

[doomloop]

One good example here is what had happened during pandemic where some economies has been crippled but for some people they can see opportunities that made them millionaires right now because they have done something in perfect timing and of course the smart idea they have discovered and works as planned. These smart people knows how to solve other peoples problem and bring solution to it.

so many business that are selling digital goods like subscription growing so fast back then.
but right now those companies are having significantly lower customers so I think some business does indeed get big when the pandemic since people are spending most of their time online anyway but slowly the business also dying once the pandemic subsides.
but because of that also we have significant increase in development of technology so many people are developing technologies left and right and as a result is right now we got many AI, many improvement in microcontroller and so on.
can't really say that an opportunities for many of us that don't have that much capital to start out business though.

At least they experience a fame or success even just a short period of time, and that is better than not experiencing it at all. It makes them think that the pandemic is not totally bad for them. It's not just that the pandemic have subsided but there are so many business men/women joined the trend and they offer something new. This affects the sales of other businesses.

There are still businesses who continue striving and surviving. They only need to think outside of the box to overcome their competitors. Speaking of competitors, newer technologies like AI is the main competitors of those who work for a company. Pandemic era might be gone, but this is going to be their next problem.

[Abu-Naim]

Are there any potential benefits that can arise from inflation, recession, or economic downturns? As they say, necessity is the mother of invention. We see an example when people in a country are  faced with very imports duty that individuals there become inspired to establish local businesses and initiate domestic production and start consuming locally as an alternative to imported goods. While this approach might prove successful in certain countries, others may encounter obstacles such as high operating costs and countless taxes on startups. This is a challenge that discourages local production. Despite these challenges, do you think there are still opportunities during economic downturns?

Yes, but I think only investors that invested long way back will benefit most from inflation if they have good plans.
Real estate and Bitcoin investors will benefit in this economic situation even though they will also use their money to purchase other goods and services for their personal needs, theirs will be minimal because when they compare the amount they invested and the amount they are cashing out in this period, there is usually some good gains that can cover the inflated price of goods.
People who believe in holding fiat currencies in their local banks have no hope, the inflation most affect them in different ways, they cannot afford to buy goods that their money can afford buying some years back because of the high inflation rate.

Local production that have no enough sticker row materials will also be affected because the cost will affect all aspect of their production procedures which will affect their outcome especially if they don’t have enough money.

[lizarder]

Yes, during periods of economic downturn new opportunities for innovation and business development arise.  For example, demand for alternative solutions can fuel the growth of new industries.  However, high costs and taxes can be a barrier to local production.

The presence of the government is very important in this situation because it can help provide services to local product owners such as taxes and high production costs. My country is trying to increase community interest in developing local products and the government is present to provide the necessary assistance, so that local products can help the sales process in the market. Without the presence of the government with regulations that benefit local product developers, I am sure that the community will be quite difficult to make products sell well.

Because there are many foreign products that are sold quite cheaply and the purchase process is also quite easy because of the availability of social media that sells these products. The government must ensure that local products have a place in the market in addition to the production process and promotional levels that can be reached by all existing people, thus local products can compete with foreign products.

[Gallar]

Are there any potential benefits that can arise from inflation, recession, or economic downturns?

~Snip

When inflation or recession occurs, in my opinion it will be difficult to find opportunities or profits when these two things happen, especially if these benefits lead to things that can make money, in my opinion it will definitely be difficult. Because when inflation or recession occurs, people's economic conditions will definitely be in an unstable state. So creating opportunities or profits at times like that will definitely be very difficult. Even when inflation or recession occurs, many people will have difficulty finding money for food costs. Especially for people who have middle to lower economic conditions, it will definitely be very difficult.

Because when inflation or recession hits a country, the economic system in that country will definitely weaken. So logically it is clearly impossible to create opportunities like doing business. Because the money or capital definitely won't be there. Even if you have capital/money, it is better to use it for living expenses. Then, for example, if you successfully start a business during inflation or recession, of course there won't be too many people interested. This is because people's economic conditions are not good due to inflation and recession. So it is certain that purchasing power and selling power are dropping drastically.

So in conclusion, business opportunities are very unlikely when inflation or recession occurs. So in my personal opinion, when inflation or recession comes, the good thing to do is manage expenses very well. Because if this is not the case, it will definitely be very troublesome if, for example, inflation or recession lasts quite a long time. Because if you think about opportunities at a time like that, in my opinion it is very inappropriate.

[topbitcoin]

For those who have a plot of land, and in the midst of food scarcity as well as the price of pengan that continues to rise, the business in agriculture seems to be quite promising. But due to the raging war between Russia and Ukraine that has not ended until now, the business in agriculture seems to be a little difficult because of the scarcity of fertilizers. In addition, today's agriculture cannot be separated from the name of technology, while at this time energy prices continue to rise, so for now related capital for business in agriculture will be slightly greater than the previous time.

I personally have a fairly large plot of land, but for now the availability of fertilizers in my country is still dependent on other countries. And the alternative step, maybe I will try to switch to compost fertilizer and make it myself at home, but this is not an easy thing and takes quite a long time. Moreover, the lack of government support for people who farm, makes me a little pessimistic about starting a business in that field.

[Bloodseekers]

Despite these challenges, do you think there are still opportunities during economic downturns?

Of course, there are, and optimistic people will usually always find opportunities even in difficult circumstances, for example during the pandemic where many businesses closed due to bankruptcy but there are also those that are actually growing rapidly, this is what I see around me which can turn its business into a shop online and getting fantastic sales, indeed the scope is not too big because it is not the result of research and so on, but at least it can prove that difficult circumstances are not always a barrier for us to be able to find opportunities in terms of business and so on.

Even though there is an economic crisis, of course there are still people who can take advantage of the situation by creating new innovations in the midst of the economic crisis. As you said, in the midst of a pandemic, there are some people who are forced to close their businesses because they don't have income that can keep them running their business. they and there are also some people who can see opportunities in the midst of a pandemic by building their businesses and being able to develop well in the midst of a pandemic.

[harapan]

[....] Despite these challenges, do you think there are still opportunities during economic downturns?

I guess another thing that's not usually discussed is that economic downturns also eliminate your competition if you decide to stick it out. It's an opportunity to expand your business buying more assets and maybe enjoy some tax breaks. You'll be in a good position once the market rebounds.

that is, if you have good financial back-up and other resources to tolerate the the current economic conditions. the very reason why a lot are not sticking out because they can't sustain their operations as they will go bankrupt.
definitely, they will find alternative options for those who can't sustain their business during economic crisis. and not many business owners can truly keep up their operations because they can suffer negative profits if they continue to operate without much customers to serve.

Just in case you have a skill too,like a high paying skill,people can need your services,the more creative and hardworking you are,the more money you'll make.
 That's another means to keep oneself engaged in times of economical recession.Although,it's really not easy to cope in situations like recession,but the truth be told one needs either a financial backup like a side hustle,and its during these times that people will want to seek more financial advise and coaching from experts.

[Bitco55]

Are there any potential benefits that can arise from inflation, recession, or economic downturns? As they say, necessity is the mother of invention. We see an example when people in a country are  faced with very imports duty that individuals there become inspired to establish local businesses and initiate domestic production and start consuming locally as an alternative to imported goods. While this approach might prove successful in certain countries, others may encounter obstacles such as high operating costs and countless taxes on startups. This is a challenge that discourages local production. Despite these challenges, do you think there are still opportunities during economic downturns?

When the economy gets tough and the problems, too much , that's when innovation is born. The challenges won't disappear immediately, of course not, it'll linger for a while before the economy becomes better, then stable, then run on automatic.

As for the new businesses, and local manufacturing companies, the same thing applies. They are pioneer and solutions to most of the economic problems. Of course they are going to face alot of challenges but ensuring wouldn't make it worth it not just for them but for the country at large.

So, yes, downturns are even where more opportunities lies