Quote:
Originally Posted by Goldfishmm
Not investment advice, just my opinion.
Various news sources and economist foresee a global recession in 2023-2024 caused by the Feds and their aggressive central bank rate hikes. I guess the asset class of choice is cold hard cash (fixed deposits that give close to 4%pa). Stocks are definitely undervalued right now but potentially trade lower since the rates are still going to go up more in the near future.
Stay safe bros and only play with what you can afford to lose. Always consult an investment professional and do you own homework/research as much as possible.
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from my own investment experience of > a decade: dont take the face value of what economists say.
Theres a saying that economists dont get rich.
Listen to their reasoning, not the verdict. Judge for yourself.
From their historical results, economists are half wrong and half right. Now thats the worst kind of advice you wanna heed. You either heed someone whos most of the time right, or even most of the time wrong (then you do opposite of what that person says)!
Their reasoning is often right but end result is often wrong. Thats what you have to know about economists.
Another thing: you can never consistently time the market at its top or bottom. Just take reasonable level, buy it and hold out when it reaches that low level of yours. Missing out the recovery part is the most scary episode you want to prevent. Half of long term stock returns are within 6 months of a recovery period.
Yes agreed that now its a time to hold cash. Dont get lured into high interest instruments that lock your cash for years. interest bearing instruments for 3 to 6 months is still fine.
Once interest rates peak, thats the time to buy anything and everything, and you do need cash for that.
Recession is actually good (if it comes). Do you know why?
Because thats the time the Fed will cut interest rates aggressively and thats a sure win opportunity for all investors (even for crypto, gold, etc).