Protection from economic recession

[freedomseeker]

As the title says, IMF is reporting that the world economy is in a danger zone for a recession, How are you protecting your assets, investments from a downturn? USD soon to lose value? where to invest instead? Safest currencies? Gold? Other means?

How to protect ones assets?

 

[Martin Everson]

Those are big questions. And I can tell you without a shadow of a doubt big hedge fund managers have not yet worked it out yet...lol.

I would say the best way to protect oneself is to completely reduce your exposure to any kind of investment and stay in cash (any G7 currency). Then wait and buy up any cheap asset in the fire sell that follows a recession.

I would love to hope USD would lose value. But USD is basically the financial system. It would need a systemic problem or challenge (hint hint RMB) for it to be majorly devalued as of today.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[void]

Martin Everson said:
Those are big questions. And I can tell you without a shadow of a doubt big hedge fund managers have not yet worked it out yet...lol.

I would say the best way to protect oneself is to completely reduce your exposure to any kind of investment and stay in cash (any G7 currency). Then wait and buy up any cheap asset in the fire sell that follows a recession.

I would love to hope USD would lose value. But USD is basically the financial system. It would need a systemic problem or challenge (hint hint RMB) for it to be majorly devalued as of today.
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this sounds like reasonable strategy (sticking with more conventional solutions) however looking for example at the USDEUR trend G7 currencies are far from equal, don't you think so?

 

[Martin Everson]

void said:
this sounds like reasonable strategy (sticking with more conventional solutions) however looking for example at the USDEUR trend G7 currencies are far from equal, don't you think so?
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Well no currency is equal to the dollar in terms of the major trading currencies sadly. Also most currencies are cross traded via the dollar. The major G7 currencies however will still retain the majority of their purchasing power.

But to answer OP's question. I would invest in a second nationality and anti depressants.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[void]

Martin Everson said:
I would invest in a second nationality and anti depressants.
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which would you recommend nowadays? (I mean the nationality 🙂)

 

[Martin Everson]

void said:
which would you recommend nowadays? (I mean the nationality 🙂)
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Go for easiest. It's no longer the quality of the passport as your not really gonna need it for travel. It will just be needed for hassle free secondary residency, banking and investment. And also in case the dreaded taxation by nationality becomes a thing like in US.

I got to do some homework on whats latest with CIB as im sure the whole Russia drama has forced some changes in that area. So I can't recommend one yet.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JohnDones]

I'm thinking Balkans region agriculture should be a decent investment. Thoughts?

Interesting that nobody mentioned water. I've been looking at some forests with clean water springs, and land with access to clean rivers.

 

[Martin Everson]

JohnDones said:
Interesting that nobody mentioned water. I've been looking at some forests with clean water springs, and land with access to clean rivers.
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Do you mean for selling water? Customers need to be close to your water source if your gonna make it a potential business investment.

I actually looked at creating in Georgia when I was there an 18,000bph bottled water plant. Georgia had some good incentives back then when I last looked some years ago. Had in mind exporting the water. But transportation costs made no economic sense when I factored in sales price. And that was before shipping costs went crazy conf/(%.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[369]

AUD if you want to hold in western currency.Second is CAD

 

[JohnDones]

Martin Everson said:
Do you mean for selling water? Customers need to be close to your water source if your gonna make it a potential business investment.

I actually looked at creating in Georgia when I was there an 18,000bph bottled water plant. Georgia had some good incentives back then when I last looked some years ago. Had in mind exporting the water. But transportation costs made no economic sense when I factored in sales price. And that was before shipping costs went crazy conf/(%.
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For myself I'm looking more for survival. I guess it would be difficult competing with Nestlé and Coca Cola in water niche

 

[bonox]

If you hold something in cash as suggested above, how will you get that cash later on into the financial system again without lots of questions and documents to be provided?

I hold about 400K euro in cash at the moment, can't hardly spend it nor put it into the bank.

 

[void]

bonox said:
If you hold something in cash as suggested above, how will you get that cash later on into the financial system again without lots of questions and documents to be provided?
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keep your withdrawal receipts from the ATM or bank desk - you should have zero problem depositing it to the same account simply referring it's the same cash and you just didn't use it

bonox said:
I hold about 400K euro in cash at the moment, can't hardly spend it nor put it into the bank.
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if you have no proof of "origin" then your best shot is finding people wanting to cashout crypto and having the same problem...

 

[369]

bonox said:
If you hold something in cash as suggested above, how will you get that cash later on into the financial system again without lots of questions and documents to be provided?

I hold about 400K euro in cash at the moment, can't hardly spend it nor put it into the bank.
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buy physical au .there will be countries outside of EU/US who will take it later even with a premium and handkiss no question asked.

 

[void]

369 said:
buy physical au .there will be countries outside of EU/US who will take it later even with a premium and handkiss no question asked.
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in D or CH you can of course buy lots of physical gold for cash no questions asked however I don't see a way how to get this gold (worth 400k) to South America for example

 

[369]

buy crypto exchange for physical in singapore in a deposit box.

 

[Jerry1911]

bonox said:
I hold about 400K euro in cash at the moment, can't hardly spend it nor put it into the bank.
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You can exchange it for Monero and spend it on CelticGold which takes XMR directly. That is, if you want to invest a part of it into gold.

 

[Don]

Im thinking it might be a good time to get some gold as well, considering potential future scenarios "A Paradigm Shift Western Media Hasn't Grasped Yet" - Russian Ruble Relaunched, Linked To Gold & Commodities | ZeroHedge

 

[Silvio]

Just a gentle reminder that if you bought Gold in 1980 and held until 2000 you lost 80% of your investment. When you buy matters as much as what you buy

 

[Jerry1911]

Silvio said:
Just a gentle reminder that if you bought Gold in 1980 and held until 2000 you lost 80% of your investment. When you buy matters as much as what you buy
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Does it make sense in your opinion to buy gold at this point it time?

 

[JackAlabama]

bonox said:
If you hold something in cash as suggested above, how will you get that cash later on into the financial system again without lots of questions and documents to be provided?

I hold about 400K euro in cash at the moment, can't hardly spend it nor put it into the bank.
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As cash is being phased out, euro cash bills carry a huge risk of just being cancelled with only a short time and quantity given to exchange. See India etc.

Silvio said:
Just a gentle reminder that if you bought Gold in 1980 and held until 2000 you lost 80% of your investment. When you buy matters as much as what you buy
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Exactly. And where you hold your assets.