2023 High Risk of Recession!

As people are looking forward to New Year 2023, the future does not seems very bright!

Following are the looming issues which can affect the global financial system & stocks there after:

  • UK on brink of recession
  • USA recession chance 50:50 based on FED rate increase
  • New Covid-Variant Pandemic Threat arised from China & Japan
  • Government-backed Digial Currency Disruptions

Additionally, global leaders also warning of recession: Jeff Bezos (Amazon), Elon Musk (Tesla)

LONG-TERM INVESTOR

Long-term investor should not worry, but should be cash-sufficient to capitalize on the bear market opportunity arrived if any:

  • Keep 70:30 ratio (70% stocks : 30% cash)
  • Keep 50:50 ratio (if you are conservative investor)

Cash: Cash or Cash-equivalent – Online Fixed Deposits which allow faster liquidation, High-yielding bonds from Trustable Partner (goldenpi.com ?) ensuring easy liquidation

Strategy: Sell 50% of those 100% plus gainers – so your invested capital is back & you have surplus cash.

Bear Bottom: Increase 30% on existing holdings on 30% corrections if any. New bear market gems will be provided if any opportunity arrives.

Note: No questions entertained on this post as this is general informational.

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