Recession Hedge

In an economic climate where inflation has cooled significantly and the Federal Reserve seems to be on a path to further increase interest rates, concerns about a recession become valid. While we can’t predict the future, preparing for the worst while hoping for the best is a sound strategy. During tough economic times, your financial plan’s resilience can be tested in ways you may have not imagined. Emotions can become heightened and influence financial decisions. But don’t worry! If you’re looking to prepare for a recession, there are 6 smart…

Introduction Economic recessions are inevitable and can have a significant impact on investors’ portfolios. However, it’s possible to prepare for and hedge against recession risks. This article will explore various strategies to protect your investments during a downturn and potentially even profit from it. 9 Strategies to Hedge Against US Recession Risk Diversification: One of the most effective ways to hedge against recession risk is to diversify your investment portfolio. This means investing in a variety of asset classes, including stocks, bonds, real estate, and commodities. A well-diversified portfolio can…

It seems that the Federal Reserve is in an unusual position: while raising interest rates to slow stronger-than-expected inflation, it is now experiencing financial instability concerns. As a result of the collapse of Silicon Valley Bank (SIVB) and the Federal Reserve’s intervention to support bank liquidity, yields sank dramatically across the board. Nevertheless, numerous factors suggest that the Federal Reserve may maintain elevated interest rates for an extended period, as persistent inflation and recent employment data indicate the need for further tightening measures. We maintain our stance that the Fed…