The Economy is slowing down. Here is how to take advantage of the coming drop!

Hi HODlers, Hiveans and Lions,

I hope you are having a great weekend.

As I was referring in my latest article from 15 days ago, I have grown more worried about the economy and the stock market. I feel like the economy is heading the wrong way in the US while it is already crashing in Europe and China.

While Stock Market is almost back to its highs as we have gone back into the "Bad economic news" = Good news! As FED will have to cut rates = Bull Market.

I believe this relation is quite broken as inflation is still too high for the FED to cut rates even if the economy started to crack. I do have some doubts over the so called independence of the FED as they could be used to pump up another round of stimuli just before the 2024 US elecion. Time will tell!

The latest JOLT Report starts to show the cracks...

Image from thread

While still creating a lot of jobs, these new jobs are slowing and are in less highly paid areas of the economy. In addition, over the past 18 months, every one of these JOLTs report has been revised down! So the number from last week will probably be revised down when nobody will care.

On the ground, I can tell my colleagues are being more careful with their spending. This includes bringing lunch to work and cutting on extra expense. Even the company has stopped some of the free stuff and reduced corporate travel to the minimum...

Unemployment rate is starting to tick up while still being very healthy at 3.8%

Image from thread

Nothing to worry about yet but these little tick up can accelerate quickly.

What to do?

I am doing a few things, while I continue to DCA into my favorite Crypto names ($BTC, $ETH, $HIVE, $IMX and $LEO). I have slowed down my purchases. Crypto is a risk-on asset class and we can feel that very little investment flows have been coming recently
I have lowered my exposure to equities and have switched to a lot of Fixed Income assets (Money market funds, Investment Grade Bonds...)
I am actually selling calls in Zombie companies (VERY RISKY, DONT DO THAT) and I am even shorting some of these names in very small amount.

And you? What do you think about the market and what are you doing to prepare?

WSJ Source

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