Recession investing seems to be the next most asked question I get in regards to recession next to 401k questions. The two are obviously completely linked but for the purpose of tonight I am going to tackle individual investing during a recession. I am going to take a general view here.

Generally all stock returns are poor during recessions. Both value and growth stocks returned well under their long term averages. In the past, value stocks have beaten growth stocks by about 4% during recessions. This is interesting because value stocks are also the least volatile - something that is important during a downturn in the economy.
Recession investing, What what exactly is the bottom line?
It boils down to this: anything that is invested in the stock market that does not follow an index is a specific risk. However if we are in a recession, or you believe we are going into a recession its a lot safer to invest in value stocks.
What are some examples of recession investing?
The very easiest thing to do is think about things that people use every day. No matter what is happening, people are going to need tp, breakfast cereal, toothpaste etc etc etc. You might hear people talk about cutting down on driving, but how often do you hear someone talk about cutting down on eating breakfast?

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