It’s hard to ignore, and it’s trending everywhere on the news, will there be a 2020 global Recession? And a quick look into, how I’m preparing my portfolio + investments, so let’s have a more in-depth look into this.
So I have just compiled a list of recent news and events of what’s happening in the banking, business and economy, there is just too much to list and show, but here are some key points that I have compiled help you open your eyes a little to what’s happening and why I believe a recession is coming:
- Deutsche Bank announced a few weeks ago they will plan to make 18,000 job cuts, staff around London, New York, Tokyo were told their jobs were going. (Show webpages)
- HSBC plans to lay off 4000 jobs globally, and the CEO resigns. (Show yahoo)
- Glencore is halting production of worlds largest cobalt mine. So this is the effect of less manufacturing as Cobalt is used in a lot of manufacturing.
- India’s auto crisis deepens as 10s of thousands lose their jobs. (Show yahoo)
- The US consumer debt is at 14 trillion dollars worth; this graph shows that debt surpassed the previous debt of the last financial crisis of 2008
- Manufacturing, trucking, and shipping down in the USA, which will affect the overall USA economy.
- Income has stagnated, inflation is rising, Your cost of living is going up, yet wages have remained where they are.
- $15 trillion negative yields in world debt – 15 countries in world debt,
My plan and strategy
The first thing to tackle is to clear all debt such as loans, mortgages and even student loan. Theres nothing worse than having debt compounding whilst you lose your job.
Next we will look to create an emergency fund at least 6 months of Money that you can live off month to month and hold this in emergency cash.
And lastly learning new skills or creating alternative income streams such as a business, or a side project.
I will change up my funds into assets. My entire portfolio will be in 3 parts which will be
30% Gold / Silver
I won’t hold stocks or index funds, as these I believe will not sustain. Perhaps will carry on going high to next year but I’m not too concerned as this is preparation.
Holding cash in a recession is a good idea, during any recession or collapses cash allows you to buy up assets. I will hold various fiat currencie’s particular in currencies such as swiss Francs normally do quite well during recessions.
Thats pretty much it, being prepared is key for any of these markets as you will never know when a recession will hit hard.