Many headlines are popping up on the upcoming recession we are about to hit. January 2023 seems like a pretty tricky place to be.
Many people will be tilting their budgets and the wallet this holiday season, and we will slowly move into recession in the new year.
I have many questions in mind on how to combat this recession and what are some things one can do to survive and not get much affected.
So I have a question for fellow Hivers, how do you prepare for a recession?
I will share my views on the upcoming recession and things I am about to do during this period.
Dividend Stocks
I am bullish on dividend stocks. I try to diversify with them because I believe I cannot forever be a content creator and work on an offline job forever. I have to let the money work for me. In that context, dividend stock companies fit the narrative perfectly.
My current approach is trying to find companies in the Energy sector. I feel the energy of all types would be future strong companies. Like power, coal, oil, anything that keeps things going will rise once the recession goes down.
So the stocks of those types are a priority. If you have any other sector suggestions, I would appreciate it in the comments.
Mutual Funds and Bonds
Now, this is tricky. Some of the bonds have a low return on investment. However, it is not zero. Not sure if it would even stand the rate of return in this recession phase. It would be reasonable to consider mutual funds and bonds only as a safety net.
I know the deposits will not fetch a good return on investment, so they will be optional and not something I call a safety net. However, funds and bonds are a go, in my opinion.
Crypto Giants and Hive
Not sure what you think of bitcoin and Ethereum because I prefer them as a strong giant in my portfolio. Hive is the priority, but having these two would be my long-term focus too.
I feel that the value of Bitcoin and Ethereum would be even more substantial as time goes on. I feel recession would make them stronger. I would be open to any other crypto suggestion too.
Sorry, I am not going to invest into Litecoin and dogecoin or any of those dogeclones for that matter. Why? They lack usecase. They are kind of aritifically boosted and also completely unreliable as far as the long term portfolio is concerned. I also feel they are kind of cyclical and investment has more chances of losing down than growing up.
Again that's just me. Your opinion may vary.
What is your focus this time for the recession?
I feel the above is good enough for me but compared to what I read from you guys; I would be happy to shuffle and make changes from my recession point of view.
So how are you preparing for the recession?
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