In The Next Recession, You Can Make Money Rather Than Lose It
Are you worried about the looming recession and potential economic crash? Good, because you should be. Most experts agree that we are headed for a major recession and, if we look at history, it could get pretty nasty.
However, by having a solid plan and educating yourself on how to best act when the market turns, you could benefit from a recession rather than letting it drag you down. Better yet, the tips we’re about to share with you are easy and can be implemented by anyone, regardless of your social and economic status or financial knowledge.
Now, as always, we can’t guarantee that our tips will help you and there is no way to ensure that you won’t be affected once the recession starts. Although, we do recommend that do everything you can to protect yourself.
1. Relocate Your Funds to Safer Investments
The number one thing everyone should do is consider safer investments. For example, when a recession hits, the stock market is often what gets the brunt of it. Gold has historically been the safest market and that is where most people place a majority of their funds when the stock market turns.
Due to the growing global tension between the US and countries such as Venezuela and Iran, there is a big chance that oil prices will continue rising even during a recession. Therefore, it could be a good move to place some of your funds in oil-related securities.
Naturally, there are other investments that are considered safe such as “mutual funds”, but they too could be affected by a recession.
2. Learn How to Short the Market
This tip is a bit risky and it requires a deeper understanding of how financial markets work, so be careful.
With that said, by short-selling assets when the market turn, you could actually make a lot of money in a recession while everyone around you is in full panic mode.
The easiest way to short sell assets and bet against the market is to use a CFD broker, just make sure you use a reliable and regulated broker. BullMarketz.com is a great place to find recommendations of the best brokers around and we suggest you start there.
3. Make Sure That All Your Interest Rates are Fixed
If there is one thing that we can all be sure of is that when the recession hits, major banks will be the first to panic. And when banks panic, they start increasing interest rates to cover their asses.
Therefore, you should already be looking into to stabilize all your loans and credits with fixed interest rates that will remain untouched even through a struggling economy. So we recommend that you contact your bank today to see how they can help you. In case they don’t want to offer fixed rates, we suggest you look into your options of switching banks and moving your credits.
4. Stay Calm and Focus on the Bigger Picture
Finally, and this is an important one. Don’t forget that the market always bounces back sooner or later. As long as you follow the steps above and do everything you can to protect yourself, you’ll be in a better position than most. Then, all you can do is stay calm and be patient.
Even during the worst economic crisis in modern history, the majority of people got their money back sooner or later. The only way that you could end up completely losing your money is if you own stock in a company that goes bankrupt, which is why you should invest in gold instead. There is also the risk of your bank going bankrupt as Lehman Brothers did in 2008, but the risk of that happening again is minimal.