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Ammon News - by JT/ Fahed Fanek |

At this time of crisis and economic recession, when observers expect the worse to come and grading agencies describe the outlook as negative, it is only normal for some investors to withdraw, and for some to put off or postpone plans to enter the market and invest.

This is what the conventional wisdom tells us: go with the market’s ups and downs, i.e., invest at times of economic prosperity and wait or stay on the fence when things are bad.

There is, however, another logic. It goes in the opposite direction. Those who invest when the economy is hot will have to pay the highest prices, and remain prone to a setback and to incurring losses when prosperity comes to a halt or things are back to normal.

The advocates of this approach call on investors to be more daring and try to implement their projects at times of recession and economic slowdown. In that case, they can hire inexpensive manpower and find eager contractors ready to undertake jobs at low prices just to keep their equipment working and maintain their staff.

In a nutshell, initiating investments and building projects at times of economic recession guarantees the availability of production factors at the lowest cost.

This logic also applies to indirect investments, like buying shares at the stock exchange. Those who enter the market at times of prosperity and strong competition will have to pay the highest prices. They will sustain losses when the economy cycle completes its course and the market starts to decline while, on the contrary, those who enter the market during a recession, as things stand now, will be able to fill their portfolios at cheap prices. They only have to wait for the market to turn around and prices to rise and reap tangible profits.

Simply, they will be able to capitalise on the upswing once it happens.

Obviously, domestic activities now, in regard to both direct and indirect investments, are not at their best. Potential investors are scared by the economic crisis and recession. This is a mistake that will always be committed by traditional investors who go with the market, not against it.

Aggressive investors know the right time to go forward; they enter when things are low and exit when things are peaking. They understand that now is the right time to break the ground and start projects in order to be ready to reap results when the economic cycle turns around.

Proper investment needs lots of prudence, research and calculations, but the crucial factor is timing.

I believe that the present time is right for investment in industry, real estate, construction and stocks.

They say, “be different and distinguish yourself and be recognised”, but when it comes to investing, I say, “be different to make money.”