Investing during a recession can be a daunting task, but it doesn't have to be. By understanding what to look for, investors can find safe havens to weather tough markets. So, if you're looking for safe investments with lower risks than stocks, here are some options you can consider.
One of the most popular low-risk investments is I bonds. These government-issued bonds provide a guaranteed return and protect against inflation. I bonds have a fixed rate and an inflation-adjusted rate, which means they offer a higher return compared to traditional savings accounts. However, they have a limit on the amount you can invest each year.
Another option is to invest in certificates of deposit (CDs). CDs are low-risk investments that offer a fixed rate of return over a set period. They are insured by the Federal Deposit Insurance Corporation (FDIC), making them a safe investment option. However, the downside is that they may offer lower returns compared to other investment options.