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/biz/ - Business & Finance


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52923758 No.52923758 [Reply] [Original]

What are some solid investments during recessions?

Stock markets are a no-go, given lower discretionary spending from average consumers pushing down demand and subsequently volumes and/or margins, especially for non-vital goods. Every recession you see a shrinking of the stock markets.

This reduction in stock/share prices does lead to great opportunity when entering the market after the downturn, being able to buy the same financial products at major discounts compare to the pre-recession price more often than not.

There are defensive sectors such as essential goods; food, water, energy, which are less effected during recessionary periods, as even when discretionary spending is reduced these goods must be purchased by consumers almost regardless of price. They do often still see downturns though, as consumers will prefer value over quality in such markets.

I'm guessing the only entities that really thrive during these extended bear markets are likely to be those who offer loans, because of the massive interest rates, but I don't see how a single person can capitalise on this in any way.

Any ideas bros??

>> No.52923784

oil and energy stocks.

>> No.52923818

What is a sector that is small and embryonic now that will become a major one five years from now?

>> No.52923845

>stocks are a no go
Dumbass. You buy all the good stuff when no one wants it anymore.
You but things that do well in recessions when people are laughing about recessions.
You buy things that do well in booms during recessions.

>> No.52923857

>>52923758
You got an up-to-date graph for us?

>> No.52923860

>>52923845
Sure, but you do that during the recession, not before. You buy after the prices drop, not before you know you will.

I'm looking for something to invest in on the way down, not on the way back up

>> No.52923875

>>52923860
Equities lead economy. The market will bottom before the worst of the recession will happen so that is still where you’d went to be.
Aside from that you probably just want to sell alcohol and lottery tickets

>> No.52923879
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52923879

>>52923857
https://www.tradingview.com/chart/?symbol=FOREXCOM%3ASPXUSD
You can choose to overlay unemployment rate overtop of this graph, but to do so you have to have an account unfortunately

>> No.52923963

>>52923758
Walmart

>> No.52923981

>>52923758
unemployment doesnt matter, who cares if theres less mcdonalds wagies vs robots. companies still make MONEY

>> No.52924025

>>52923981
That's why stocks trend downwards during recessions.

Without those wagies having employment, there is less spending, with less spending, companies will sell less or margins will decrease, with less corporate profits there will be a weaker labour market, ad infinitum, until something breaks the cycle, usually a lowering of the interest rates.

>> No.52924200

>>52924025
Cash is king during a recession. You are already holding an appreciating asset even considering inflation.

>> No.52924258
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52924258

>stocks are a no-go
lmao
the stock market bottoms before the economy does

>> No.52924269

>>52923758
constellation software

>> No.52924492

>>52923758
Short term bonds now that the fed isn’t ruining our chances at a normal investment cycle

>> No.52924538

>>52923758
Silver?

>> No.52924559
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52924559

>>52924492
3, 6 and 12 month bond coupon rates are literally 0% in the US market:
https://www.bloomberg.com/markets/rates-bonds/government-bonds/us

2 year coupon rate is 4.25%, which doesn't even cover inflation rates currently, hence the yield curve inversion, meaning the market has already priced inflation in to the price of the existing bonds unfortunately.

>> No.52924576

>>52924258
OP is a dumbass that wants to time the bottom and will end up FOMO'ing after we've already pumped halfway to the top.

>> No.52924596

After this crash there will be no recovery. Just a slow descent into poverty and further suffering while Jews grow richer and happier.

>> No.52924646

>>52924538
Silver's use cases are in electronics, solar panels, cars, etc, things that will absolutely fucking tank in the upcoming recession as people stop taking out credit and spending money on things that aren't necessities.

If you're referring to the idea of gold and silver being used as a hedge against FIAT currency inflation, it doesn't work given that anyone with money in those asset classes also pull their investments as times get tough, as well as the mines being able to easily increase capacity but optionally choosing to keep prices high by not doing so, just as Saudi Aramco does with Oil.

This would have been the case when FIAT currencies used gold as a guarantee, but they no longer do, I really don't think it is prudent to do this anymore outside of the idea that it is seen as the good thing to do, when in reality it is no different to investing in copper or other basic commodities.

>> No.52924760

>>52924646
>Silver's use cases are in electronics, solar panels, cars, etc, things that will absolutely fucking tank in the upcoming recession as people stop taking out credit and spending money on things that aren't necessities.
You think solar panels are a bad investment when energy costs are spiking? Silver supply is also capped harder than fiat and costs more in energy to get it out the ground than it’s currently priced.

>> No.52924802

>>52924760
It takes many many years to pay off solar installation, around 13 last time I looked. This 13 year ROI is not something regular consumers will care about during a recession when necessities are almost unaffordable.

Ontop of this, solar is meant to increase real estate valuations, something that everyone expects to come back down from unrealistic highs, something we're already seeing now. No one will want to invest more money into a property that they expect to reduce in value.

Sure, some people might still buy solar, but I doubt it is going to increase. Respect if you take that risk and it works out for you though.

The point about silver is something I didn't think about though. Why silver specifically though? Even though it will be more expensive to mine and refine more of it, it will simply be in less demand as consumerism dissipates.

>> No.52924866
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52924866

Silver
i
l
v
e
r

Just look what it did in early 2011 when everything was recessionary

>> No.52924887

>>52924802
??
Here in the netherlnds is something like 4 with tax relief and 6 without

>> No.52924889
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52924889

>>52924866
The price of silver has gone down since early 2011 until now.

This investment has likely given you negative returns over a course of 11-12 years.

>> No.52924909

>>52924887
It is massively dependant on region, government bursaries but mostly installation costs from what I recall. Based on the raw values figures of 4-6 years are common, but apparently the reality is far different after maintenance, asset depreciation, installation costs, etc,etc.

I could be wrong though, been a long time since I looked at these thing. Once upon a time the ROI for small wind turbines was only around 1 year for good areas.

>> No.52924923

>>52924802
>Why silver specifically though?
I just like it to be honest. I don’t necessarily think it’ll increase drastically in price, but it also won’t decrease in price drastically either. It’s more of an insurance policy against central banks and overbearing governments. I can sell a silver eagle off the books at spot silver price or higher on Facebook marketplace, a bar or barbershop.

>> No.52924933
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52924933

This is my entire stock folio.
I didn't expect uranium to fall so much

>> No.52924939

>>52924923
Understandable. This seems very reasonable the way you've described it, an effective hedge.

>> No.52924946

>>52924933
That is unexpected, given the increase in energy demand and some nations like Germany looking increasing their nuclear sector (from what I recall). Any reason why it's dropped so low?

>> No.52924998

>>52924933
Uranium is incredibly volatile, those kinds of swings are extremely common. With rates this high I don't think it's going to break 5 again for a while.
>>52924946
Germany gave up on their nuke plants in favor of "greener" energy sources (source is their ass) and now they're shivvering for that decision. They're importing their nuke energy from France and I think they wanted to pivot on that nuke shutdown decision, but that shutdown mistake is going to cause a multi decade delay.

>> No.52925123

>>52924200
>You are already holding an appreciating asset even considering inflation.

Inflation has nothing on you if you play the game right with DeFi tools like SpoolFi.

>> No.52925148

>>52925123
>DeFi
Massive risk

>> No.52925150
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52925150

>>52925123
Yes I too like deregulated finance who cares if it goes down 99% if I'm making 45% APR :^)

>> No.52925384
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52925384

>>52924998
you fucking stupid piece of shit. You moron. Why, why does everybody believe this shit.

France has a shitty, very old reactor fleet which is currently down 35% of its capacity due to corrosoion of one type of reactor they use. Since the french grid is highly centralized and is dependent on nuclear energy. One design flaw in one reactor type whipes out huge parts of their generation capacity. To explaine the absolutly abismal state of the french energy system would take weeks to explain. What your shitty, retard brain needs to know is this.

A few days ago their forecast for reactor capacity dropped AGAIN. They are currently sucking every available kwh out of the european grid. Germany had to redispatch 700WM to France. italy, Denmark, UK, Germany, Spain and even the Swiss exported everything the interconnections could handel to secure French demand. Their market system is beyond broken and the heavy subsedising of electricity makes france an inefficient fuck.

On the other hand. Germany managed to decrease gas consumption in the grid by using a diverse set of energy sources and has spare capacity to supply france and other european nations. Germany is a net exporter of energy since the early 2000s.

France problems with nuclear power are systematic and will take decades to fix. Their good reputation was based on a very highly subsedised state controlled system, based on 40 year old reactors at the limit of their designed life.

EDF nationalisation:
https://www.reuters.com/business/energy/france-keeps-edf-buyout-offer-12-euros-per-share-filing-2022-10-04/

EDF yesterday lowered AGAIN the output for the next months which they do nearly every year, because they cant hit a target if their fucking life depended on it. This is on top their shitty output already...

-1GW in january
-2GW in feb
-4GW in march
-5GW in T3

>> No.52925407

>>52924998
>>52925384
https://www.agora-energiewende.de/service/agorameter/chart/power_import_export/01.12.2022/18.12.2022/today/

France sucks energy from germany so hard it sould try sucking off people proffessionally. Fucking put it ANY period of time in the last years and you will see that.

>> No.52926205

>>52925123
retard

>> No.52928207

>>52925148
Every investment is a risk anon and defi gives you custody over your assets. Not to mention that staking is a good way to earn passively, I have been earning decent yields for Om on Binance and Sylo on Huobi so far

>> No.52928533

>>52923875
>Equities lead economy
Suicides peak before crashes.

>> No.52928611

>>52923818
Renewable Energy Sector isn't exactly embryonic but it's due to moon around 2026 because that's when a lot of the contracts kick in. Delta (airliner) is switching their planes over to entirely renewable fuel.

Biomed sector as well, think, genetic engineering and cell programming.

In terms of WHICH companies you should buy, I can't help you on that one. I could tell you which ones I hold but some would accuse me of shilling my bags, but there's really only so many corps in the space anyway I think $50 would allow you to buy a share or two of each lol.

>> No.52929705

>>52923758
>Stock markets are a no-go
Do any of you use inverse/short funds like ProShares UltraPro Short QQQ or ProShares Short S&P500 ? if China keeps fucking up Covid, I'll look for seriously at YANG and YXI.

>> No.52929943

>>52923758
thats pre pandemic data your fag

>> No.52930377

>>52925148
>Massive risk
The risk you experience here is literally lower than usual cause with Spool, you have your assets diversified across several yield farming protocols also it's non-custodial making yyou immune from any centralized entity having access to your funds.