Investment Choice for Recession

Axekay
2022-06-13

Inflation is at its peak, which is likely to invite FED to increase rate again anytime soon to curb the inflation. This will in turn lead to recession. Lower income, lower purchasing power, less purchase, less revenue and profits made by firm, and the downtrend continues.


Sound scary? The good thing is, recession is not forever. The economy will recover, and the firms will do better than before again [smile] 


In the meantime, what should we invest in then? As a safe choice, I recommend DCA into $Vanguard S&P 500 ETF(VOO)$on a regular basis (e.g. monthly). VOO is basically S&P 500 ETF, tracking the share price of top 500 US companies. This is supposed to be representative of US economy. A firm may underperform eventually, but it is unlikely a big economy like US will underperform in the long run.


Stay safe and invest safely!

πŸ’° Stocks to watch today?(27Β Dec)
1. What news/movements are worth noting in the market today? Any stocks to watch? 2. What trading opportunities are there? Do you have any plans? 🎁 Make a post here, everyone stands a chance to win Tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • erichotb
    2022-06-13
    erichotb
    if know possible recession is coming, why don't sell away all shares and keep cash till the share price drop to a level that is attractive to us?
    • Axekay:Β 
      market is unpredictable [smile] the attractive level to buy ib is subjective to many (do you define 200 as attractive, or 300 or 350?) and may not eventually happen [smile]
  • Duizzz
    2022-06-13
    Duizzz
    The future is still unknown however we can take precautions and protect our investments by diversifying [Cool]
  • Frente
    2022-06-13
    Frente
    VOO is good but singapore based investors will need to pay 30% withholding tax so maybe an ireland domicile etf will be better?
  • Kingcat
    2022-06-13
    Kingcat
    agree. Time for dca [Like]
  • jat
    2022-06-13
    jat
    dca is the way now... difficult to predict the volatile mkt
  • blue sky
    2022-06-14
    blue sky
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