During a recession people tend to wonder what type on investments they should put their money into without having to worry about losing it in the stock market. Savvy investors prepared for the recession by using defensive strategies and investing in long-term investments that are known to produce results even in a poor economy. Several investors have poured their money into gold stocks, bonds, and actual physical gold. Since gold will always be worth something, investors can prepare for the long-term future by investing in gold. What about other investments during a recession? There are several to choose from, here are a few of the most popular investments during a recession.

Real Estate
Though the real estate market tends to worsen in a recession, there are some areas of real estate that are really booming. Investors in the real estate market need to concern themselves with the cash flow rather than appreciation. Rental properties are always a hot commodity during a recession since many people are saving money because they cannot afford the house payments or simply cannot afford to buy a house because of the risk of being laid-off. Rental properties hold contractual obligations that must be paid by the renters.

Retail rental properties tend to do poorly in a recession because several stores close their businesses due to the drop in consumer spending. Retail companies also decide to wait to build if they were planning an expansion. While retail rental investing is a bad idea in a recession, it may work if you find the right business. Some companies begin losing money during a recession while others see growth. Consumers will never stop buying food and clothing, though they may not buy as much, they still need to buy it to survive. Companies like Wal-Mart and Target will continue having steady revenue streams unlike "luxury" businesses like Starbucks and massage parlors.

Mobile home parks are another great real estate investment during a recession. A mobile home park has a steady cash flow so it attracts many investors. Another great feature about mobile home parks is that the land value tends to appreciate especially as big cities grow and the land is sought after for commercial development purposes. Mobile home parks need to be looked as a long-term investment. Mobile home parks also are in high demand, especially when other mobile home parks close and those tenants need a place to live. Since mobile home parks tend to have people who are low-income or retirees, there is always a steady cash-flow because they can afford the payments. In fact, the turnover ratio in a mobile home park is only 5 percent.

Precious Metals
Gold, silver, and platinum are always wonderful investments. During a recession, several investors are looking for ways to get out of the stock market and find something that is long-term with guaranteed returns. Precious metals are a wonderful investment opportunity for those individuals. The great feature about precious metals is that they are accepted in every country. Several investors purchase gold to be the "insurance" in their investment portfolio because they can always fall back on it at any time.

Silver is a valuable investment because it is demanded in the industrial sector. Although silver doesn't perform as well as gold during a recession, it typically yields high returns once the recession is over. It is a low-risk strategy to use during a recession like all other precious metals. The demand for gold always increases during a recession because many investors are weary about inflation. Whenever there are financial problems in the economy, the demand for gold will always increase. Gold is one of the few things that are recognized in every country. An investment in a United States eagle gold bullion coin will be worth almost the same amount of money as the Canadian maple leaf gold bullion or the Australian kangaroo gold bullion.

Those investors that seek out platinum investments need to be weary because it is particularly vulnerable to mining strikes in foreign countries and is considered a volatile investment. Platinum doesn't yield high returns like gold but it is an excellent investment for portfolio diversification.

Foreign currencies
A savvy investor will always look at investing in foreign stocks when the economy goes south. With the risk of inflation, the U.S. dollar loses value and investors begin looking at foreign currencies to add to their portfolio. Global investors always look at foreign currencies because they have low correlation with other assets. Global companies like Nestle and McDonalds are also great investments because they have large foreign demands.

An easy way to invest in foreign currencies is through CDs. CDs allow investors a safer way to participate in the currency market without the risk of direct trading currencies. Foreign stock exchanges are also another great investment. Japan, Australia, and Great Britain all have strong stock exchanges for the foreign investor.

During a recession, the gas and oil prices tend to lower because consumer spending is down. For an investor with deep pockets, investing in oil during a recession is a sound investment because they can expect to see a return within a few months. The month of December and the summer months tend to be excellent travel times for everyone and they will consume gas one way or another.

Timber
During a recession, investing in timber is a good idea because it has a steady demand. During stock market declines, timber tends to go up because it uncorrelated to stocks. Timber actually increases over time and investors don't even have to input anything to watch it increase. Each year timber tends to produce average returns of more than 15 percent. Timber never has had a losing year because the trees continue to grow. The nice thing about timber is that everyone uses it. In fact, the average American will use a 100-foot tree every year and that is not just the ones that are building homes.

Investors that are looking for ways to stabilize their portfolio should seriously consider investing in timber. Timber not only protects an investor's capital but it increases in real terms over inflation. Having a safe investment that provides significant returns in your portfolio is wonderful during a recession since it is a time when you don't want to take on as much risk. Timber investors can purchase land directly or purchase shares in publicly-traded companies. Timber investments can also be made in foreign markets like Panama where the timber costs are inexpensive.

Food & Drug Companies
No matter how bad the economy gets, people will never stop buying food and going to the doctor. Prescription drug companies will continue making money because the demand for the drugs is great. Generic brand drug companies will also continue to make a profit during a recession because they offer the same drug as the brand-name manufacturer for a fraction of the cost. Currently, there are over 6 billion starving people in the world. The demand for wheat and beef is great in any market. Countries are looking for ways to feed those individuals and other companies are also seeking funding for food to feed those individuals.

Most everyone will continue purchasing food and other "necessities" like deodorant, and shampoo. While the shoppers may buy the store brand instead of the name brand, they will still buy it. Companies that sell these products tend to see their stocks level out or make a slight gain during a recession. Wal-Mart is one of the largest retail stores and is one of the best stores to invest in during a recession because they sell so many products. Not only do they sell food to consumers, they also sell products that are focused on personal hygiene.

These are a few of the best investments to consider during a recession. There are several other investments that perform well during a recession. One final investment to consider is energy. People will always use energy during a recession and they will find a way to pay their energy bill, if they don't, they lose power and they definitely don't want that. Companies that are investing money in alternative sources of energy are wonderful investments during a recession because they continually receive funding to research these methods like solar energy and wind energy. Other companies that are seeking ways to make their products more environmentally-friendly will also receive funding.

A recession is not a time to panic. Some investors worry they will lose more money so they sell their stocks as soon as possible. Smart investors understand the importance of holding onto good stocks that will bounce back at the end of the recession. Patience is the key to making it through a recession and looking for safe investments that yield a steady return ratio will help. High-risk investments are not great investment strategies during a recession unless you have enough money set aside to get through it. A defensive approach to your investment portfolio is an excellent way to look at a recession.