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Ask HN: What's the best investing strategy to have during a recession?
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Re: Ask HN: What's the best investing strategy to have during a recession?
#2I am not a financial advisor. Nor am I your financial advisor. Below are my opinions.
It depends. Countercyclical assets are a common strategy. Sometimes called "guns and butter." Utilities, some bonds, bulk food production, etc.
Re: Ask HN: What's the best investing strategy to have during a recession?
#3Keep investing with dollar cost averaging and wait it out. Don’t try to time the market.
Re: Ask HN: What's the best investing strategy to have during a recession?
#4Every recession is different. In this one, value stocks haven't been hit as hard as growth stocks, especially speculative growth tech stocks.
Re: Ask HN: What's the best investing strategy to have during a recession?
#5Investments have less to do - at this time - with a recession or a looming recession so much as the impact of federal monetary policy.
"Don't Fight The Fed"
If the fed is trying to actively cool down the economy by raising the interbank lending rate, this increases the price of capital for all companies. This also incentivizes people to not invest in companies - if they can get a "Risk Free" return from treasury bills of 4.5% today why would they invest with a 100% risk asset.
So no, forget 'recession' instead change your question to 'whats the best investing strategy to have during a period of monetary tightening' - and that is, in general, to not be investing until you think the period is over. Good luck with that one.
Re: Ask HN: What's the best investing strategy to have during a recession?
#6I am not a financial advisor. Nor am I your financial advisor. Below are my opinions. It depends. Countercyclical assets are a common strategy. Sometimes called "guns and butter." Utilities, some bonds, bulk food production, etc.
An inflationary bear market with federal monetary policy tightening and you suggest bonds? Really?
Unless they are IBonds - what rationale do you have for this and what would have been the return on invested capital if you did this anytime in the last ~6-8 months.
Re: Ask HN: What's the best investing strategy to have during a recession?
#7I am not a financial advisor. Nor am I your financial advisor. Below are my opinions. It depends. Countercyclical assets are a common strategy. Sometimes called "guns and butter." Utilities, some bonds, bulk food production, etc.
An inflationary bear market with federal monetary policy tightening and you suggest bonds? Really? Unless they are IBonds - what rationale do you have for this and what would have been the return on invested capital if you did this anytime in the last ~6-8 months.
Since the effects of monetary policy tightening are already priced in, bonds are no wrong-er than any other answer...
Re: Ask HN: What's the best investing strategy to have during a recession?
#8starting 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).
Re: Ask HN: What's the best investing strategy to have during a recession?
#9Watch some Charlie Monger videos. For the people I see talk he and Ray Dalio do some of the best investment talks I feel.
One here from Monger, dont sweat the link bait headline: https://www.youtube.com/watch?v=v5UCmsXpngA
Re: Ask HN: What's the best investing strategy to have during a recession?
#10Watch some Charlie Monger videos. For the people I see talk he and Ray Dalio do some of the best investment talks I feel. One here from Monger, dont sweat the link bait headline: https://www.youtube.com/watch?v=v5UCmsXpngA
Munger.