How to survive in weak economic situation ?

How to survive in economy downturn ?
How to survive in weak economic situation ?
How to survive in worst economic condition ?

Economy
The economy of a nation is determined by many factors like the prices of the goods, gross domestic product GDP data, inflation data, deflation data, wholesale price index WPI and so on; the spreadsheet spreads. The leading factor that influence the growth of a nation is its inflation and volatility in the share market. Adding to this the performance of various sectors of industry like Agriculture, pharmacy, automobile, finance, miscellaneous, transport, steel or metal, oil etc directly reflects the value of corresponding shares in the finance market. The cash inflow and outflow, trading rate of the currency that is currency rate merely decided in currency trading reflects the strength of a nations currency.

Currency Rate
Simply termed as foreign exchange or Forex determines the exchange rate of a particular currency against the traded currency. The strength and weakness of the currency is both profit and loss for dependent sectors. For example if a nations currency is weakening against dollar, then this is profit for the IT sector companies that are doing projects to other nations so that they can exchange the dollars at higher local currency rate. Also this is benefit factor for exporting companies.

But weakening currency predicts loss for importing companies like oil sectors, refineries that have to purchase crude oil in dollars. Since they have to spend more local currency against dollar this is loss.

Strengthening currency has the reverse effect as explained above.

Real Estate
Real estate sector abbreviated as reality sector suffers much in the economy downturn. Because the land value depends upon the spending ability of the people. In such a worse economy situation prevails people never opt for a spendthrift way rather act upon to prevent their money, investment and assets. So the companies of this sector are badly affected as they depend on the profit of the land sales. If people are not ready to bargain, then the company has to reduce the price of the land or land products to a level that will burn their fingers and balance sheets.

Banking Sectors
Banks are the best friend for all classes of people as they offer instant loan to all applications like car loan, home loan, education loan, personal loan etc. Here comes the safety methods of surviving in the bad economy situation. Home Loan is the money mantra. Generally when economy goes worse it is better to avoid any loan at any cost. Because one has to repay the loan with interest and this confidence affix to the job certainty. Worst economic condition is mother of job cut and layoffs. When there is job cuts, job loss or even layoffs, how a person can be able to repay the availed loans.

Steps to be taken

1. Avoid availing loans

2. Cut short the spendings

3. Dont invest in share market under panic thinking the market has bottomed out as no analyst knows the bottom level

4. Dont pullout the money from share market if you invested as this will further weaken the market

5. Avoid speculation trading if you are a trader

6. Choose the best sector and midcap stocks that will give better returns in future if you wish to invest and before that analyze How to invest in share market

7. Dont do any job quit as company may offer high salaried jobs but there also uncertainty prevails and chances are bright for layoff or job cut there once that project is completed

8. Stick to the company where you are and try to hold the present job

9. Select the best place where you can purchase the land at cheap rate so that in future this will give multiple and multiple of returns as economy will boom in near future

10. Never think to sell a land as your land will be undervalued

11. One can have an optimistic approach toward mutual fund investment

12. Never let your mind nodding positive towards stocks that gave higher dividends previous year since there will be slash in dividend rate or no dividend

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