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Recessions: Cycles & How to Invest?

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  1. #1

    Question Recessions: Cycles & How to Invest?

    It is so complicated that I do not know how to ask this question. Should we keep more cash or buy gold? Usually, how is the life cycle of recession? I had this feeling due to what is happening in UK, US, China, and HK recently.


  2. #2

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    I would keep cash. It is more liquid and you can invest in other things where you will get better returns than gold.

    Gold is "safer" as an investment, but if you are smart and lucky, you can invest that money in stocks at the trough of the recession and see it grow multiple times more than gold would. Depends how much time you have to research and watch the stock market.


  3. #3

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    is it safe to buy utilities stocks? like 0002, 0003, 0006?

    thanks.

    PetravanderVegt likes this.

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    Time in the market wins over timing the market.


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    Quote Originally Posted by stanleystanley:
    It is so complicated that I do not know how to ask this question. Should we keep more cash or buy gold? Usually, how is the life cycle of recession? I had this feeling due to what is happening in UK, US, China, and HK recently.
    Something to consider. If you had this feeling so has everyone else and its already priced into the market. Often by the time you know its already too late. I have to second @pin on this. Time in the market.

  6. #6

    One way to 'time' the market is to divide your investments into different classes - real estate (inc REITs), stocks, bonds, precious metals, cash. Fix the proportion of each and then rebalance periodically.


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    Quote Originally Posted by Elefant&Castle:
    One way to 'time' the market is to divide your investments into different classes - real estate (inc REITs), stocks, bonds, precious metals, cash. Fix the proportion of each and then rebalance periodically.
    The all weather portfolio.

    Also I don't get why people think precious metals are safe investments, they generate no cash flow.

  8. #8

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    Quote Originally Posted by pin:
    The all weather portfolio.

    Also I don't get why people think precious metals are safe investments, they generate no cash flow.
    True about precious metals. However, Gold and Silver are on the rise after years of being in a slump.

  9. #9

    True about bonds as well - generate negative cash flow.


  10. #10

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    Quote Originally Posted by Elefant&Castle:
    True about bonds as well - generate negative cash flow.
    But bonds generate cash flow.

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