a recession proof portfolio


Lately those that look further then the value of the S&P500 hitting 3000 might notice that things are being artificially kept high by the fed.

All the signs of a recession are here

  • QE under the form of repo support
  • Cheap money through the rate cut (the one that was not going to happen)
  • debt levels are at an all time high
  • stock buybacks are the things keeping the market high

So for me even though the Stock market might go a little higher the risk to reward ratio is not really all that high.
Personally I have sold all my stocks and put most of it in crypto and gold. But now I am looking into another avenue

Looking into possible futures you are actually doing macro trading. Investing with a long term view. Now the road upto here from the crisis of 2008 has been paved with the support of the availability of cheap money and the dollar being the reserve currency in the world.

  • China is hoarding gold and talking to Russia to get away from that dollar
  • Petro dollars are in danger of being replaced
  • Countries are looking to do away with dollar denominated debt

Creating a recession proof portfolio

So what to do?

The idea would be to look at things that would benefit from "the shit hitting the fan" or ones that have nothing to do with the shit at all.

  • Companies with little to no debt
  • Companies that do not depend on certain business cycles of the general economy
  • healthcare and the ageing population
  • Gold
  • digital currencies (small amounts with big potential)

So how are you investing?

Do you think that the S&P is still worth investing in?


Comments 4


Thanks for posting from Steemleo 🦁

06.11.2019 19:35
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06.11.2019 21:30
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Greetings friend @felander.

Investing in S & P500 is a way to offer instant diversification for your portfolio and reduce the specific risk market and volatility associated with the investment stock market.

But as you say, the signs of recession are evident.

I was very interested when you say that:

  • China is hoarding gold and talking to Russia to get away from that dollar
  • Petro dollars are in danger of being replaced
  • Countries are looking to do away with dollar denominated debt

The creation of national cryptocurrencies seems to be the north to follow. China, Russia, Iran and others are already working on this concept under the premise of accounting for their international reserves expressing them in crypto. As you say, they intend to move away from the dollar.

Personally I have sold all my stocks and put most of it in crypto and gold.

The best choice. Good luck and success for you.

All best, Piotr.

07.11.2019 01:56
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hey Piotr

Investing in S & P500 is a way to offer instant diversification for your portfolio and reduce the specific risk market and volatility associated with the investment stock market.

very true in normal circumstances but if you look at the fact that birkshire hathaway has never had so much cash positions and they call buffet one of the best investors ever then that must be saying something...

07.11.2019 11:25
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