Headlines from the mainstream and financial media are inescapable: a recession is coming and it could strike at any moment.
Worse still, it could already be there, given that inflation figures are at record highs and oil and gas prices are soaring.
The stock market and cryptocurrencies have been crushed during the recent market downturn as cheap debt becomes unavailable and interest rates rise. Together, a global debt unwind has begun to unfold, and the impact is already tragic.
Panic and fear are everywhere, but fear not the ongoing macroeconomic chaos – PrimeXBT can help traders survive a recession. Here’s how.
Build the perfect portfolio to withstand a recession
All the necessary factors for a recession are pretty much here. Consumer inflation is widespread and energy costs are rising.
The rising cost of living has caused consumer demand to dry up. Copper prices – a strong indicator of recession – fell. Unemployment is also low and GDP is contracting.
Google search activity for the term “recession” in the United States is hitting highs not seen since 2004 – about four years before the Great Recession. This data could suggest that the general public is early to panic again, but that a recession is still likely.
As a result, investors are in a panic and don’t know where to put their money but in cash. But fleeing to the dollar isn’t really safe anymore.
With inflation rates as high as they are, the purchasing power of the dollar is falling as its value rises relative to the rest of the planet’s assets.
Building a portfolio with currency positions long USD, long oil, and short stocks or crypto can prevent pre-recession panic and panic.
With PrimeXBT, leveraged long and short positions are available on over 100 different trading instruments. The platform includes both traditional and digital assets, from crypto to forex and stock indices to commodities.
Don’t cash out, stay exposed to the right opportunities
Cash is still king. The USD is the world’s reserve currency and the primary safe-haven asset during times of economic turmoil. Investors’ first instinct is often to go for cash, but with such high inflation, even the dollar is not going as far as it used to.
Moving all capital to USD is a one-sided transaction. If the markets reverse suddenly and sharply, only being exposed to the dollar is a great way to miss out on potential profits.
Markets are cyclical and the dollar’s recovery – although strong – cannot last forever. When risk appetite finally returns, it is not wise to ignore risky assets like stocks or crypto.
In the past, Bitcoin and cryptocurrencies have proven to be some of the most profitable investments of all time. But due to their high price volatility, crypto prices can crash 80% or more sharply without warning and create a very risky trade with the economy on shaky ground.
Bitcoin has failed as an inflation hedge, but gold and silver still have a chance to hold their titles as some of the best safe-haven assets during recessions and economic hardships.
Gold and silver have not performed well with the rising dollar, but could be the next asset class to rally as the macro environment changes.
Investing in yourself is the best investment you can make
Warren Buffett said, “The best investment you can make is an investment in yourself.” “The more you learn, the more you earn,” he continued. Today’s statement rings true for all talented traders who dedicate themselves to their craft and go the extra mile to learn.
PrimeXBT offers the incredible opportunity to use the bear market in crypto and stocks to develop your skills with a transformative education. The PrimeXBT Trading Academy educational website offers a solid library of videos with trading tips and strategies created by expert trader Dirk Hartig.
PrimeXBT contests provide the arena for weekly trading competitions. These weekly competitions allow users to compete using risk-free virtual funds for a chance to win crypto prize rewards.
There are also plenty of opportunities to use the risk-free demo funds to practice trading, learn new skills, test trading strategies, and more.
Combining PrimeXBT Trading Academy’s free education with the opportunity to practice without the risk of loss is an offer that should not be refused, and it could be the difference between surviving a recession or the bear market that eats you alive.
PrimeXBT brings so much under one roof, with a copy trading community, free mobile app, yield accounts, and several other innovative products and services.
There is no need to fear a recession when PrimeXBT professional trading tools can provide relief and a way to maintain profits.
While other platforms force traders to sit on the cash-only sidelines, PrimeXBT allows traders to stay active and exposed to an endless amount of good opportunities.
If you’ve had enough of the macro chaos and want to better prepare yourself, be sure to check out the award-winning PrimeXBT trading platform.
All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.