What to Invest in During a Volatile or Falling Market
5 Things to Invest in When a Recession Hits
Leveraged ETFs
Exchange-traded funds that employ leverage are among the most volatile instruments in the markets today. These funds are usually linked to an underlying index or other benchmark and will move either tangentially or conversely with it in some multiple.
The following sectors appear to have a more robust outlook:
A good investment strategy during a recession is to look for companies that are maintaining strong balance sheets or steady business models despite the economic headwinds. Some examples of these types of companies include utilities, basic consumer goods conglomerates, and defense stocks.
The Federal Deposit Insurance Corp. (FDIC), an independent federal agency, protects you against financial loss if an FDIC-insured bank or savings association fails. Typically, the protection goes up to $250,000 per depositor and per account at a federally insured bank or savings association.
For example, certificates of deposit (CDs), money market accounts, municipal bonds and Treasury Inflation-Protected Securities (TIPS) are among the safest types of investments. ... Money market accounts are similar to CDs in that both are types of deposits at banks, so investors are fully insured up to $250,000.
Bonds / Fixed Income Investments include bonds and bond mutual funds. ... Stocks / Equity Investments include stocks and stock mutual funds. These investments are considered the riskiest of the three major asset classes, but they also offer the greatest potential for high returns.
Here are the best low-risk investments in May 2021:
Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks.
Following are some ways you can survive and even thrive during a recession — but only if you prepare now.
Retail, restaurants, and hotels aren't the only businesses often hurt during a recession. Automotive, oil and gas, sports, real estate, and many others see heavy declines during times like these.
Recession-proof refers to assets, companies, industries or other entities that do not decline in value during a recession. Examples of recession-proof assets include gold, US Treasury bonds, and cash, while examples of recession-proof industries are alcohol and utilities.
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