What's the best investment strategy in the event of a recession?

Don’t sell, hold. If you sell at a panic, you’re likely to lost a bit, only sell if you need cash, buy some shares when they down. Overall don’t put your whole savings in. Lots of people actually make these mistakes so be extra careful if there really is a recession.

I believe the US market will also tank along with the EU and that we’ve got maybe a few months until we start to see some serious panic selling, we had a little glimmer of that yesterday.

I know that ‘past performance is not indicative of future results’ however in this case, it appears so: https://www.tradingview.com/chart/yb19Oc9Z/

I’ll be waiting until circa -2.5 and below before I start loading up on stocks with everything I’ve got. Right now I’m about 80% in cash, with some money in tech stocks.

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Chart layout cannot be opened. Perhaps you need to enable it for sharing before it can be seen by others?

Intrigued to see that chart. Thank you!

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Increase your allocation to defensive and counter-cyclical stocks

+1

:slight_smile:

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It’s the other way round - inverted curve is when short-term bonds yield higher rates than long-term ones

As longer term bonds require people to lock their money up for a greater period of time, they should be compensated for the risk.

You’re right! I was typing too fast. Will edit. :slight_smile:

It is more to do with the liquidity underlying the different bonds. If one particular part of the yield curve offers less liquidity (due to the Federal Reserve buying/selling into the market) then the rates will rise.