Where do you go if there is anywhere safe to invest your money? A wise investment during a recession is either Treasury Securities or Certificates of Deposits. When times are bad, such as a grim outlook on our economy, there are limited options right now.
There’s no way to predict what this economy is going to do. However, one of the best ways to invest without risk might be a money-market account. It works much the same as a savings account, but it comes with a better interest rate.
The minimum balance is required, anywhere from $100 to $5,000, but it’s a good place to put your liquid cash. In a recession, we must learn where to invest, and it would be a smart thing to do if we wait. This means waiting for the next opportunity and putting your money into an emergency fund.
Treasury securities provide absolute safety and security for investors anywhere who prefer to avoid risk in their portfolios. Like other bonds, buying a Treasury bond means you are in essence loaning out your money. However, unlike other bonds, Treasury securities are backed by the full taxing power of the United States government.
A Certificate of Deposit (CD) is a safe choice, as long as the bank holding your CD is FDIC insured. Certificates of deposit tend to pay more interest than money market or savings accounts, but in exchange, you are required to lock up your funds for the duration. The terms for CDs vary, with some as short as three months and others as long as five years.