There has been a lot of talk about how 2008 will be financially. The term recession has been thrown around a lot perhaps for shock value but probably not. Let’s assume for a moment that these recession predictions are accurate. What will be its effect on the stock market? Well, the stock market will always be there even if the numbers change. However, in a recession, everything is relatively a penny stock. So even though penny stocks have received bad press, they will always be around during good times and bad.
Recession is the time when all the companies are struggling to make profit. Yet this does not stop people from investing. People are more desperate then and there to put more faith in a company and therefore are willing to take more risk when economic times are tough. During such times these people can be more cautious and avoid high risk stocks. Penny stocks are risky irrespective of the economy but if done wisely it is a good investment.
If there was a recession, there would be a lot of focus on penny stocks because people would have less money to spend and would not be as agile. There will be less negative talk about a stock that will present more people than ever before with an opportunity to invest. People will see this as more of an opportunity than gambling. You see it about perspective and attitude. Anyone can lose money doing just about anything if done the wrong way. Penny stocks can make you a lot of money if invested in the right way.
All the people talking bad about penny stocks are either people who got burned from investing in them or people who know nothing about them except what others have told them. It makes for interesting stories but the truth is penny stocks’ leverage will kick butt against any other stock type. Other stocks can make huge gains but certainly not as quickly as penny stocks.
So will 2008 be a recession? I do not think so. Will this be a good year to invest in penny stocks? Of course it will. Invest wisely. Penny stocks have never represented a bad investment, one that should be approached with caution. It’s easy to take the advice of others without knowing the truth, but adding penny stocks to your portfolio is a good move any day of the week.
