Ask HN: What's the best investing strategy to have during a recession? • Hacker News Board

Re: Ask HN: What's the best investing strategy to have during a recession?

#21

Post by ActorNightly » Tue, Sep 20, 2022, 6:36 PM UTC

There is no widespread right answer to this.

The best strategy to invest (with the goal to make money) at any period in economic cycles is have more accurate information than other people.

If you are worried about economic outlook, instead of investing money into financial instruments, invest time and some money into increasing your own personal value by learning new skills.

Re: Ask HN: What's the best investing strategy to have during a recession?

#22

Post by baremetal » Tue, Sep 20, 2022, 6:55 PM UTC

imnotreallynew wrote: post #11

baremetal wrote: post #8

starting a business (that produces things people need rather than want) as far as investments like stocks or bonds... i am largely sitting in cash since the invasion of ukraine. when things get bad enough (and the fed pivots) then i will buy stocks. or you could just DCA if predicting macro trends isn't a fun filled activity for you (it is a hobby of mine).

Inflation is the highest it’s been in nearly two generations. Why do you believe holding cash is a good idea?

i can weather a little inflation if it means i have a pile of cash to buy with both hands at the right time.

Re: Ask HN: What's the best investing strategy to have during a recession?

#23

Post by mikewarot » Wed, Sep 21, 2022, 1:42 AM UTC

I think it's very important to understand the root causes of the changes in the economy, and have a good model to use in predicting the future and planning your course of action.

There are a number of factors in play currently that go beyond the normal boom/bust business cycle.

Re: Ask HN: What's the best investing strategy to have during a recession?

#24

Post by tomcam » Wed, Sep 21, 2022, 2:42 AM UTC

Inflation is high. Your money is worth substantially less every month in this economy. I personally had a fair amount of cash lying around, so I am doing as many major home improvements as possible.