What is a Depressed Market?
Often referred to as a buyer’s market, the depressed market is a market situation in which there are a substantial number of sellers while the current number of buyers is considerably less. As a result, this type of market carries a great deal of supply, but with relatively little demand. This allows the active buyers to enjoy lower prices as long as the market remains depressed. Depressed market conditions are usually a short-lived phenomenon. During this window of opportunity, savvy buyers can often look around and identify investments that are likely to generate a significant amount of return once the depression of the market begins to fade. In the interim, buyers will take steps to identify the best options, run the projections and quietly purchase the investments with the intention of holding on to them as they begin their upward swing. If the projections are correct, the buyer will hold on to the investments until just before they are expected to level out and possibly begin to d
