Well, its official, we’re technically in a recession for the first time in almost three decades.

Well, almost official. A recession is officially defined as two or more consecutive quarters of negative economic growth. We’ve only had one so far – the quarter ending 31 March. But since it’s almost a certainty that the quarter ending 30 June will reveal a massive economic slowdown, we can pretty much say today that Australia is in a generational first of a recession.

But what does a recession really mean for S&P/ASX 200 Index (ASX: XJO) shares? And how can we survive one with our wealth intact? To this end, here are three tips:

1) Remember cash is king in a recession

The first thing you should think about as we enter this recession is the regal supremacy of cash. Not as an investment mind you – cash is still lousy at growing your wealth. But it’s more important than ever to secure your cash and cash flow. Recessions are tragically a time when many Australians will be out of work. So I think it’s imperative that we all ready our personal finances for a potential shock. All jobs are safe until they’re not, and now is the time to hope for the best, but prepare for the worst.

So before you even think about investing during a recession, make sure you have a couple of months of living expenses saved up for that rainy day. Hopefully, the skies will stay clear for us all, but you will still want to have a raincoat in case it clouds over.

2) Don’t let ASX 200 volatility get the better of you

Recessions and ASX bear markets can be a great time to invest in shares at cheap prices for the long-term. But many investors don’t get to enjoy these opportunities because they do silly things with their investments amid the volatility that recessions can bring. Selling your shares at a loss, for example, is usually not a good idea in the midst of widespread market panic.

I personally have a rule of never selling in a bear market unless absolutely necessary – and I’m usually a net buyer of shares. This means that even if I had to sell off some shares in order to buy others, I would always try to avoid doing this in a bear market. So have a mental battle plan at the ready for what you might do with your shares in a recession-induced bear market. This will hopefully save you from making emotional decisions that cost you down the road.

3) Always remember there’s light at the end of the tunnel

Although not recently, Australia and the wider global economy have gone through many recessions before. And you know what these recessions all had in common? They all eventually ran their course and were replaced by good times once again. Yes, this recession is different – we haven’t had to deal with a pandemic like this for a hundred years. But all other recessions were ‘different’ too, and we eventually saw them off. I have full confidence that this time will, in fact, be no different.

More reading

• Why Alumina and Stockland share prices could outperform in coming weeks
• 2 ASX REITs to buy with $1,000 today
• We’re in recession. What does that mean for investors?
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• 3 of the best ASX 200 tech shares for your watchlist

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The CSL Limited (ASX: CSL) share price is having another off day on Friday despite the release of a potentially positive announcement.

In afternoon trade the biotherapeutics company’s shares are down 3% to $285.04. This means the CSL share price is now down 17% from its 52-week high.

What did CSL announce?

This morning CSL revealed that it has entered into a new, significant partnering agreement to accelerate the development, manufacture, and distribution of a COVID-19 vaccine candidate.

The agreement has been made with the Coalition for Epidemic Preparedness Innovations (CEPI) and the University of Queensland. It formalises the support provided by the company to the two parties since the onset of the pandemic earlier this year.

CEPI and CSL will fund the development and manufacture of the University of Queensland’s “molecular clamp” enabled vaccine. This is a transformative technology patented by the university’s technology transfer company.  It enables rapid vaccine design and production against outbreak viral pathogens.

According to the release, the university is aiming to take the vaccine candidate into a phase 1 clinical trial in July. Should its clinical trials be successful, a vaccine could be available for distribution in 2021.

While acknowledging that there is still a lot of work to be done, CSL believes its production technology can be scaled to produce up to one hundred million doses towards the end of 2021.

It would also subcontract other global manufacturers. This would increase the number of doses that can be produced and broaden the geographical distribution of vaccine production.

That is of course if other companies such as Moderna don’t get there first with the vaccines they have in clinical trials at present.

A “promising vaccine.”

Professor Andrew Cuthbertson, CSL’s Chief Scientific Officer, commented: “We are very pleased to be able to provide our scientific expertise and platform technologies to make a strong contribution to this critical joint effort with CEPI, the University of Queensland and others.”

“CSL will contribute to UQ’s promising vaccine with our proprietary adjuvant, MF59, made by Seqirus, along with expertise in process science and scale-up from our Australian facilities, managing advanced clinical trials and the large-scale manufacture of the recombinant vaccine,” he added.

The Chief Scientific Officer concluded: “Should trials be successful, this vaccine holds the potential to provide protection against this urgent public health emergency for Australians and those around the world vulnerable to this devastating virus.”

More reading

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• 2 ASX growth shares I’d buy before Afterpay shares
• Why Appen, CSL, Openpay, & Zip Co shares are tumbling lower
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James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Aumake International Ltd (ASX: AU8) share price is zooming higher today after the company announced it now offers leading Chinese-owned buy now, pay later (BNPL) services via its in-store and online channels.

AuMake is a specialist retailer that caters for Asian tourists and daigou personal shoppers in Australia and New Zealand. The company has a multichannel distribution network, selling Australian and New Zealand products online via owned and third-party channels, and through brick and mortar stores.

The company operates 15 stores under the AuMake and Broadway brands, located along the east coast of Australia and in New Zealand. These stores primarily cater to organised tour groups. The types of products on offer include skincare, health supplements, wool, honey and clothing.

Before we dig into the announcement, it’s important to note that AuMake sits at the very small end of the ASX with a current market capitalisation of around $21 million. At the time of writing, the AuMake share price is sitting 10.34% higher for the day at 6.4 cents after rallying as much as 27.59% in early morning trade.

What did AuMake announce?

This morning, AuMake revealed that it now supports BNPL services for its in-store customers and 40,000-strong online database.

Accordingly, AuMake’s customers will be able to use Alipay’s “Huabei” feature and Tencent’s “Fenfu” feature to make purchases.

Alipay is one of the most popular online payment solutions in China and falls under the umbrella of Chinese multinational giant Alibaba.

Huabei allows purchases made via the Alipay wallet to be paid using credit facilitates, including interest-free or daily incurring interest loans. According to AuMake’s announcement, Huabei has more than 190 million users, with 93% of them being under the age of 35.

Meanwhile, rival conglomerate Tencent is reportedly in the final stages of developing its Fenfu BNPL credit feature. Fenfu will offer similar credit facilities to Huabei that can be used by its 1.1 billion customer base.

Tencent recently made headlines in the ASX BNPL space after news broke that it had acquired a 5% stake in market darling Afterpay Ltd (ASX: APT).

AuMake believes the adoption of these BNPL payment methods will assist the company to penetrate a younger Asian customer demographic. The retailer concluded today’s announcement by stating it will continue to assess initiatives that provide a contemporary shopping experience for its customers.

According to Market Index, the 4-week average turnover of AuMake shares currently sits at only $26,821. So if you’d rather invest in larger and more liquid companies, the top ASX shares in the free report below might be more up your alley.

More reading

• Here’s why CBA shares are a good buy today
• 3 more founder-led ASX 200 shares to buy today
• 3 tips for surviving an ASX recession
• CSL share price lower despite COVID-19 vaccine news
• Why Alumina and Stockland share prices could outperform in coming weeks

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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