Should You Buy Stocks During A Recession?

Investing in stocks during a downturn can pay off, but it requires patience and a long-term outlook.

Apr. 12, 2026 at 7:30am

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An extreme close-up of gears, levers, and other intricate mechanical components of a banking vault or safe, conveying a sense of stability and security during uncertain economic times.As economic concerns mount, the resilient machinery of the banking system stands ready to weather the storm.NYC Today

A recession can be an unsettling time for investors, but it can also present opportunities. While stock prices often fall as the economy slows, recessions can be one of the best times to invest for long-term gains. Legendary investor Warren Buffett has said, 'The future is never clear; you pay a very high price in the stock market for a cheery consensus.' Preparing to take advantage of market downturns is key, as investors who stay patient and even add to their investments during a recession can see substantial returns over time.

Why it matters

Recessions can create fear and uncertainty, but they also open up potential for investors who are willing to look past the short-term volatility. By understanding how to navigate a downturn and position your portfolio for long-term growth, you can potentially boost your returns and achieve your financial goals, even in challenging economic times.

The details

There are several ways investors can increase their exposure to stocks during a recession. Rebalancing your portfolio to shift more assets into equities, increasing contributions to retirement accounts like 401(k)s, and directly buying stocks through a brokerage account are all strategies that can pay off. While it may not feel intuitive to invest more when the news is full of economic gloom, history has shown that those who can stomach the short-term pain often reap the rewards down the line.

  • The global financial crisis hit in 2008 and 2009, sending stocks lower.
  • The market bottomed on March 9, 2009.

The players

Chris Davis

Chairman of New York investment management firm Davis Advisors.

Warren Buffett

Legendary investor.

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What they’re saying

“You make most of your money in a bear market – you just don't realize it at the time.”

— Chris Davis, Chairman, Davis Advisors

“The future is never clear; you pay a very high price in the stock market for a cheery consensus.”

— Warren Buffett

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Investing during a recession requires discipline and a long-term mindset, but it can pay off handsomely for those willing to look past the short-term volatility. By rebalancing your portfolio, increasing retirement contributions, or directly buying stocks, you can position yourself to benefit from the eventual market recovery.