This morning at the gym I overheard two financial advisors talking. One of them said, “You make the most during a recession. You just don’t know it.”

He was referring, of course, to the fact that when the market is down investors buy low so they can later sell high. That’s why it’s important to hold a steady course rather than reacting out of fear when things go south.

What’s true for the market at large is true for individual companies as well. Take Diamond Foods, for example. The snack food maker will benefit this year from a bumper crop of walnuts, which is expected to lower wholesale prices. That gives Diamond a couple of options. One is to lower retail prices, a strategy no one could argue with during difficult economic times. Another is to maintain their retail price points and use the extra margin to invest in the future. That’s the path Diamond has chosen.

Not only has the company stepped up its advertising in a bid to drive sales and build brand equity, it has been investing in innovation as well. Even in a commoditized category such as the nut business there are new ideas, as evidenced by the 100 calorie packs Diamond recently rolled out.

The management team at Diamond Foods is “buying low” today with their investments in marketing and new product development. That will give them a stronger platform and more opportunities to “sell high” in the future. Smart.