Monday, December 11, 2023

A Recession Renaissance

Brayan Diaz, Verrazzano Class of 2024, completed major in Business Finance

The purpose of my research paper was to explore the behaviors of different investment instruments during a recession, the months leading towards a recession, and the months after a recession to identify when and what would be best to potentially invest in during these times.

Some of the instruments of my focus were stocks, bonds, and CDs. My project explored what exactly a recession is, taking a deeper dive into what these instruments are, and most importantly it briefly explored what has happened in recent history to investments in these instruments that were made during, before or after a recession.  The goal was ultimately to uncover whether the investments went up or down in value significantly.

My thinking in choosing a capstone project was to choose something that would benefit me in some way. I also thought how when most people think of recession, all these negative thoughts come into their heads. In my case, there was a sense of regret in myself from the previous recession (during Covid-19) that I hadn’t taken the massive opportunity to invest my money in the stock market when prices were low and seeing how certain stocks have had massive returns in the years after.

I wanted to write a paper that could perhaps change the way younger people like me view a recession. I had already known at the time I began my capstone that I would be doing an internship at a bank named HSBC for the summer. I wanted to choose a topic that I could build more knowledge on throughout the internship. After completing my capstone, along with my internship experience, I am more aware of different things out in the market to invest in when I have the chance.

With the current events going on in the Middle East and Ukraine, speculation about a recession is heating up again. I hope my paper can act as an eye opener and as a source of knowledge to take advantage of different capital markets when the next recession hits the country.





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