Investment is the best strategy to secure your finances, specially when recession is ready to rock your boat. The unrelenting negative economic news of past two weeks have painted a grim picture of global finances. Recession predictions have started proliferating faster than reality shows. It’s the indication to make a shift in your investment decision, and think differently; rather smartly.
Following are some core investment strategy to encounter the negative effects of recession:
Recession is a part of economic cycle. It can be considered as a natural part of growth, wherein the cycle comes to rest and creates a breathing room for economy to regain its strength. If you are smart enough and have a long term investment plan, recession can be one of the best opportunities for buying stocks.
Foreign currency exchange
From investors point of view, investing in foreign currency is a very attractive option. Such investments offer diversification as the individual currencies have low correlation amongst themselves, and in general they also do have low correlation with other asset classes. There are different ways to diversify into foreign currency, and the most recommended is Forex Investment Market.
Equity in other countries
Investment on other countries whose economy is more independent, makes a sense during recession. Such investments can be helpful for investors hoping to diversify their business portfolios. The Asian markets are least correlated to the U.S. stock market globally, and unfurls a great opportunity for foreign investment.
India is amongst the most preferred destinations for global investors. The country in the past has shown great resilience during the global meltdown which started in USA in 2007. Investing in India can be a wise decision because of the encouragement provided government of India to the foreign investors. FDI (Foreign Direct Investment) initiatives and liberal foreign investment policies makes India the destination of choice for global investors.
Real estate can be one of the major investments during the tough time of recession. During the time of financial uncertainty, it is recommended to focus on attaining cash-flow from the investment made in property rather than appreciation.
Investment in gold
Gold is a proven, quality, long term asset with universal acceptability. The precious metal serves as a wealth store during a slide into deep crisis. Buying gold purely protects the wealth and tend to multiply the investment with the passage of time. It has been observed that value of gold has been constantly rising in recent months as many investors are spooked with the fear of inflation and financial turmoil.