With a solid plan, anyone can benefit from a recession
It’s becoming more and more evident that there is a major financial recession looming on the horizon, but that doesn’t have to mean bad news. The financial experts that are the most convinced that the market is about to turn are also most likely the ones that will benefit from it the most since they are prepared for it.
That being said, with a solid plan, anyone can benefit from a recession, and if even if you end up not making any profits from it, you’ll be in a better position than most.
To get a better idea of how one should best deal with a potential recession, we contacted the financial experts at BullMarketz.com and asked for their opinion.
Recession Investment Advice from Experts
First and foremost, Canada appears to be the country and an economy that has the best chance of surviving the upcoming recession. The fact that Canada has a strong economy that’s not included in the ongoing trade war and lacks a housing bubble coupled with okay unemployment numbers all plays a part.
Therefore, Canadians probably have the best opportunity to make it out of a new financial crisis without too much difficulty. However, there are still certain things one should do to prepare, and if the next crash is anything like the last one, we’ll all feel the effects from it.
- Move Funds to Safer Investments
The number one rule when a recession is coming is to try to save as much of your current investments as possible. It could be a good idea to look for equity funds that are considered safe if you’ve invested a lot in highly volatile instruments. It’s also advisable to spread your investments out to lower the risk of losing it all at once.
The oldest trick in the book and one that works surprisingly well is to sell stocks and buy gold when the stock market falls. The reason being is that the value of gold remains decently stable even through the worst of it.
- Short the Market When Needed
Learning how to short sell assets is another great way to benefit from a recession. Just imagine if you’ve sold most of your investments and start short selling stocks when the market falls. You’ll probably be the only one around who’s making some money from the crash when everyone else is panicking.
Short selling can be very risky, and you need to know what you’re doing so be careful. Also, we suggest you look into short selling with an online trading platform offering CFDs since it will make it easier for you.
- Get Fixed Interest Rates On Credit Cards and Loans
One thing that happens when the economy crashes is that banks start to panic. That’s why you should try to set all of your loans and credits up to be as stable as possible, otherwise, you run the risk of getting a rude awakening when all your interest rates start to skyrocket while the market crumbles.
Be smart and contact a financial advisor today.
- Stay Calm and Trust the Market’s Ability to Bounce Back
The most important thing to remember when the market collapses is to stay calm. If you didn’t sell your assets on time, you should hold on to them. What many forget is that the economy always bounces back after a financial crash. Unless you have all your money in stocks of a company that goes bankrupt, you’ll probably get the money back a few years down the line when the market is recovering.
Therefore, it’s better to hold on to investments than try to sell at a loss. Just look at the 2008 economic crash as an example. Most of the people that lost their life savings back then had their money in a regular bank account or some bank-owned fund. People that had invested in stocks and other instruments made it out okay.
This content is a joint venture between our publication and our partner. We do not endorse any product or service in the article.
