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Dien Rice
February 13, 2008, 12:21 PM
I've been recently re-reading Donald Trump's classic first book, "The Art of the Deal"... and one thing struck me.

Donald Trump made his name when New York was in a recession!

Here's WHY a recession can be a good time for business... For one thing, there's less "competition"! Fewer people are clamoring for the resources you may want... Which could mean you can get it cheap!

That's how Donald Trump got started with his first deal... New York property was down. People were getting OUT. That meant there was a chance to get property cheaply.

Trump negotiated a complex deal which involved buying a building cheaply, while getting New York City to waive property taxes on the building for 40 years. There's no way he could have negotiated a deal like that during good times - only during bad times.

So, downturns also create opportunities, if you look in the right places...

Are we in a recession now? I think the finance guys are still busy figuring it out... Here are a couple of recent posts on the topic...

I know a lot of stock market experts are looking at the downturn in the markets as possibly good times to BUY... Why? Because some stocks are being offered at bargain-basement prices! Some stocks deserve to be low... But out of fear, many stocks of good businesses have been sold so they're below what they're really "worth". But you gotta do your "due diligence" to figure out which ones are "worth" far more than their current price...

The same kind of argument goes for other types of business "assets"... A recession could offer many opportunities for the business bargain-hunter!

- Dien

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