How to capitalise on recession?

In a financial crisis, its valuable to revisit the financial definition of "risk". Many would perceive risk as something negative because we get exposed to danger e.g. when we drive a car too fast. In finance, risk is different and broader. An investment can turn into both a better or worse outcome than expected. The spirit of the financial definition of risk is captured by the Chinese symbol for "danger" and "opportunity".

The definition of risk as both danger and opportunity summaries a conversation I had with an bank employee about how to capitalize on recession. She said that there are two ways to go about the financial crisis. Either we see stagnation or creativity. Stagnation, because the market chooses to react negative on the changes in stocks, value, interest rates, loans etc. Creativity because some chooses to see opportunities in bankruptcy, unemployment etc.

I am very inspired by opportunities and believe in any crisis we have the possibility to find positive change. What opportunities and how to capitalise on recession, I am discovering these days. If you have any input, please comment my blog!