A recession is when an economy experiences negative growth for at least six months and is measured by GDP (gross domestic product), which encompasses an economy’s good and services.

During a recession, unemployment often increases and wagerises can fail to meet the average price hikes. Savings and investments can also suffer due to a drop in interest rates and the value of certain assets, especially where currency is concerned.

But, if you’re an investor, there are a few save haven assets and trading opportunities that you might want to consider to hedge against poor economic growth.

Core sector stocks

Rather than pull your money from stocks, which is what you might be tempted to do during a recession, it’s wise to re-think your strategy.

Even during volatile economic times, people still need to spend on essentials such as energy, healthcare and food staples. For this reason, commodity trading can prove to be a safe bet during a recession, as long as you choose to invest in core sectors.

Real estate

Depending on your strategy and approach to investing, choosing to buy property during a recession can mean picking up a bargain as house prices typically fall during weak economic times. Inflation, high interest rates and difficulty borrowing can all equal sow growth in the property market and subsequent price falls.

Once the market recovers, it’s possible to make a profit on your original purchase. But it’s important to get the timing right and continually assess how quickly house prices are recovering as well as the rate of growth.

Choosing to buy property is a long-term investment so it’s important to take into account your long and short-term goals if you decide to invest in real estate.

Gold

Known as the ultimate safe haven asset, gold has always proved a popular investment during uncertain times.

Unlike other assets, gold typically hold its value throughout recessions and often sees an increase in price due to the rise in the number of investors. It’s not backed by any currency, so its value doesn’t follow that of any fiat currency such as the US dollar or GBP.

Gold also has a scarcity value, meaning that the asset is not limitless, making it a more attractive investment among a wide range of individuals.

To really benefit from investing in this precious metal, you should consider buying before recession hits as the value tends to increase once an economy is in the depths of it. Another good alternative is silver, though this generally experiences a lower value than gold.

Dividend yielding investments

Investing in these types of stocks means you’ll get a portion of a company’s profit, helping to keep your cash flow steady during those tricky economic times. But it’s vital to choose well established companies in essential sectors to minimise any risks.

Finally, not all of these safe haven investments will be suitable for every investor so take the time to weigh up any specific risks and benefits before adding them to your portfolio.