Questions tagged [recession]

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Why do raising short-term yields indicate that the economy is about to enter a recession?

Below is the excerpt from the article Term Structure Of Interest Rates Downward sloping — short-term yields are higher than long-term yields. Dubbed as an "inverted" yield curve and ...
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3 votes
2 answers
909 views

What is the safest asset to hold if you think a longterm depression is coming?

I'm obviously not a financial advisor, nor do I have a crystal ball. But the more I read/think about the global macro-level outlook the more I believe a long and deep correction is coming. Anyone with ...
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1 vote
2 answers
82 views

Should I start an IRA account now?

I am interested in opening an IRA account for retirement but have been holding off due to the current swings of the market. I don't want to put say $3000 in an IRA account this year and then loss on ...
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0 votes
5 answers
229 views

Where does all the money go during a crisis? [closed]

We are facing a crisis right now. A lot of people are losing their jobs and they are going to have financial problems. I'm curious about what happens with the money. Let's say that the airlines go ...
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1 vote
1 answer
175 views

what makes walmart a recession proof stock but not costco

During the 2008 crash, Walmart was one of the few companies whose stock didn't take a hit at all but Costco's share price dropped almost half. They both provide essential goods at rock bottom ...
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27 votes
13 answers
18k views

Best way to invest $300,000 inheritance for a couple intending to retire in 10 years

My wife and I are getting older and have a target to retire in 10 years. We just inherited $300,000 from a family inheritance (from liquidated property). So this money will come shortly and I'd like ...
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-1 votes
1 answer
71 views

Stock martket reductions in a recession

Can somebody give examples of how much different stock markets dropped during recessions, in percentage terms?
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  • 125
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2 answers
250 views

What form of investment should I use to wait out fears of a recession?

I have recently pulled my investments out of the stock market and am looking for another way to grow my funds. However, in light of past recession fears I do not want to invest in any way that would ...
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32 votes
11 answers
8k views

Should I wait for a recession to buy a home?

I am currently renting, but am considering buying a house in the future (1-3 years). I want to know if I should even consider waiting for a future recession to buy a home at a better price. Some would ...
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2 votes
2 answers
240 views

How to find out what countries are currently in a severe depression?

When I try to google for countries in a recession, all that I find is fear mongering about a specific country or a list of countries that the author deems to be "on the verge of recession". However, ...
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6 votes
4 answers
386 views

Will Future Recessions be Prevented by the Large Amount of Passive Index Funds and ETFs?

According to this article from CNBC: Passive investing, made up of funds tracking market barometers, has now taken over nearly half the stock market as more investors shun stock-pickers and flock ...
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31 votes
9 answers
13k views

Should a middle class person emulate a very wealthy investor for % of cash hold?

Warren Buffett is keeping $128 billion that can be deployed when stock market goes down. Should a middle class person hold little more of their investments as cash? Suppose if the person is ...
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1 vote
1 answer
143 views

What does it mean by Global recession? [closed]

I am bit curious to understand what it actually means when I read global recession is coming soon. There are some questions which pop in my mind reading such news. Some of them are: What causes ...
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2 votes
3 answers
79 views

Assuming a mortage dependent on interest rate outlook

Purchasing a home. All-cash deal is feasible. I believe that mortgage rates will be rising in the near future, say doubling in ten years. I do not believe mortgage rates will fall. I believe interest ...
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23 votes
11 answers
9k views

What should I do with the stock I own if I anticipate there will be a recession?

I want to preface this with saying I am not asking if there will be a recession because I recognize that this is impossible to answer. I am asking if I feel there will be a recession, what should I ...
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2 votes
3 answers
441 views

What's the rationale for the advice 'don't try to time the market'?

Common investment advice is 'Don't try to time the market, just pick a risk profile and stick with it'. With the inverted yield curve and a fair bit of talk about an upcoming recession - it seems ...
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1 vote
5 answers
355 views

Refinancing student loans in the context of an impending recession

I am a 23 year old, employed, Software Engineer working for a startup in an inexpensive city in the United States. I make $71k/year plus stock options that incrementally vest over 3 years. I have no ...
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0 votes
1 answer
218 views

How to save a dying company [closed]

NECESSARY INFO So my father owns an advertising agency, which was pretty successful before a recession hit our country. After that, my father had to reduce costs, return his office, and even fire ...
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1 vote
3 answers
501 views

What does "burned through $300 million" mean?

In the book "Antifragility of Islamic Finance: The Risk-Sharing Alternative" by Umar Rafi and Abbas Mirakhor, on page 101 I read the following line: Pets.com, the poster-child company of ...
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0 votes
1 answer
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What types of resource/mining stocks are counter-recession?

I'm trying to learn the method behind the madness that explains some resource/mining stocks' performance during the last recession (December 2007 - June 2009). SPY: -38.15% (for comparison) NRP: -34....
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  • 625
5 votes
1 answer
260 views

P2P lending sites - What was their history in 2008 and how safe is your money in a recession

I recently read a lot about P2P lending sites and their favourable interest rates but the skeptic in me wants to get more opinion from real people here with experience (and not blogs that get ...
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  • 452
2 votes
2 answers
245 views

Are there any mostly-passive funds that become active after stock market crashes?

I am thinking of the following scenario: Expansion, index with low fees After a market crash, lever up and buys equities Does there exist a fund which follows this strategy? Preferably an ETF?
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4 votes
1 answer
292 views

Fed funds rate and probability of a recession

From an article today on Investopedia: Bonds Signal up to 60% Chance of Recession Earlier in 2019, the Federal Reserve announced a pause in its program of interest rate hikes, re-energizing the ...
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1 vote
2 answers
247 views

I have some savings want to invest in index fund but worried about recession in 2019/2020

I have a dilemma. Should I go all in and invest my savings in Vanguard indexes such as VTSAX? Or should I play it safe and wait for a recession? The market recovered from the December 2018 drop so ...
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1 vote
2 answers
945 views

Could the US demonetize large bills? If so, how can I protect myself if I rely on holding US dollars in cash?

There was a demonetization in India. I heard that this was difficult for Indian residents to handle. I understand most of the money is in digital forms, but there is still a large amount of actual ...
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3 votes
1 answer
821 views

What kinds of ETFs weathered well the 2008-2009 financial crisis?

I started to do research on which ETFs kept or increased their value over a recession in 2008-2009. I saw a lot of articles which says "invest in X, because X is always in demand (even in crisis)." X ...
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14 votes
5 answers
6k views

Why do stocks necessarily drop during a recession?

Why do stocks drop during a recession? Where does the money go in favor of these assets? Or is the first question not true?
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1 vote
0 answers
122 views

ADR value with US dollar inflation / recession

If one were to hold an ADR (American depositary receipt), and the currency of country of the underlying foreign security increases in value compared to the US dollar, or the US dollar drops in value (...
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-1 votes
1 answer
202 views

Should I squirrel money and wait until the next recession to invest in TD E-Series? [closed]

After prolonged research on finance and investing I'm about ready to start putting money into actual investment products for a retirement fund down the line. And for a number of reasons I've decided ...
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24 votes
5 answers
8k views

Why invest in long term government bonds when the yield curve is inverting?

The New York Times has noted that the US is heading toward an inverted yield curve, which is one of the precursors for a recession. The yield curve is said to be inverted when long term government ...
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2 votes
1 answer
171 views

Does every recession start with a trigger/shock? What are the likely triggers for the next one? [closed]

There have been about 10 recessions after 1950. While observing the recent two, each one started after a trigger. 2008 - Mortgage Crisis and 1997 - dot com. I understand that a recession is not a ...
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