What are your plans when the recession hits ?

Palo Alto Networks reactjsman
May 12 32 Comments

All our money is in stocks. So what are your plans when the next recession hits. Any thoughts when it would occurs?

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TOP 32 Comments
  • Panasonic Avionics / Sales
    1/0

    Panasonic AvionicsSales

    BIO
    I do sales. I sell stuff. It’s what I do.
    1/0more
    Recession means 2 straight quarters of gdp fall. It doesn’t mean anything other than hiring freeze or slight dip in stock market. You don’t want to hide when that happens. The events of 2008 are unique and it will never happen in our lifetime again
    May 126
    • AT&T / Eng
      .getTC()

      AT&TEng

      BIO
      New Grad. Always Looking for a New Opportunity
      .getTC()more
      The events that lead to 2008 were unique but it is naive to think that such a recession cannot occur again
      Read: The Black Swan by Taleb
      May 12
    • IBM ybe57s
      I believe full consequences of 2008 were just kicked down the road.

      The Fed has fewer tools available to navigate the next downturn - outside printing money and causing inflation.

      They will choose inflation over a depression though because, politically, doing something is better than doing nothing even if it’s not.
      May 12
    • Panasonic Avionics / Sales
      1/0

      Panasonic AvionicsSales

      BIO
      I do sales. I sell stuff. It’s what I do.
      1/0more
      Sure it’s possible. But unlikely. Those that ran and hid in 2008 lost out (I did and I’m sad about it). Just make big TC then diversify. Keep a pot of $$ for opportunistic stocks. Forget about real estate. Who’s got 50years to wait for buying prices to increase to turn a profit, esp in Bay Area? Maybe if you’ve done your research and can speculate in other markets but it’s a lot of work.
      May 12
    • IBM ybe57s
      Any recession/depression is a great opportunity for people that can weather it. No doubt about that.
      May 12
    • New / Enggoing2g
      What do you mean by those who "hid" @1/0? What does it mean to "hide" during a recession?
      May 12
    • Amazon MsSanchez
      To sell all your stocks and/or to not buy in. If you bought most bank stocks during the 2008 recession, you would have done well
      May 12
  • Apple BenderRama
    Good that I don’t have money.

    All hard earned moolah went to student loans.

    #Bernie2020
    May 123
    • Intuit splatt
      so you want your hard earned moolah to then go to other people's student loans?
      May 12
    • Apple BenderRama
      Student loans shouldn’t exist.

      My mom and dad paid their hard earned money to bail out the banks 11 years when the last recession hit.

      If tax payer money can go to two (*two*) wars that nobody wanted, it can damn well go towards free public college and healthcare.

      Bite me.
      May 12
    • Intuit splatt
      you do realize that the govt bonds issued to cover the cost of sending one to school on public money is a student loan, right? paid for by the same people who are paying student loans now... if anything, the thought of single payer college education is a "regressive tax" since the working poor will pay some trivial tax to send later high earners to school. at least with healthcare the poor get to use it too.

      perhaps none of those expenditures should happen, have you considered that option?
      May 12
  • Google envelope
    This is a really good question. When a big recession hits, illiquidity will likely dry up real fast. Which will hurt basically ALL assets denominated in dollars. This includes stocks, commodities (including gold), bitcoin, real estate.

    The best is to keep money in dollars during this but trying to time the market is impossible. So one possible solution is to buy long tail options to hedge against a massive downturn. Treat it like a little insurance package. When the recession hits, this hedge will cancel out the loss of all other assets leading you to a neutral state.
    May 123
    • Amazon ax5Zd
      Depends on the nature of the recession. Keeping dollars was effective in the last two recessions but the ones in the 70s and 80s came with massive inflation and wiped out the value of dollars.

      Like 20% in one year inflation.
      May 12
    • Google envelope
      You’re right, a recession could be coupled with a simultaneous debasing of the dollar in which case there’s almost nowhere to hide. In this case, Gold and Bitcoin is my choice as it’s cannot be debased.
      May 12
    • Amazon MsSanchez
      Debased dollars? You mean “devalued”. Debased refers to lowering / removing the underlying commodity value.
      May 12
  • Google smellypoop
    Burn the city to the grounds
    May 122
    • Nvidia showeridea
      For the Bay area it's already a feceses contest
      May 12
    • Intuit splatt
      burning it down would at least sanitize it
      May 12
  • Microsoft solenya69
    Buy more stock
    May 120
  • Real estate
    May 122
    • New / Eng
      unHappyBee

      NewEng

      PRE
      Samsung Electronics
      unHappyBeemore
      Last recession was caused by real estate inflated prices...and hence it was The most affected area...very bad choice, to go blindly for it
      May 12
    • Facebook public2
      Pretty sure they meant but real estate if/when it goes on sale lol
      May 12
  • Nvidia showeridea
    Magic internet money
    May 120
  • TribalScale sfUN21
    Btfd
    May 120
  • Apple appl3
    Put your money in a savings account that yields 2.x% return. This will let you keep up (slightly behind to be precise if inflation occurs at 3% on avg) with inflation while not being prone to when a recession hits
    May 131
    • Capital One / EngyVjt53
      Savings account interest rates are basically tied to the Fed’s interest rate. And the first move the Fed will make at any signs of a recession will be to drop the interest rate.
      May 13
  • Microsoft leetworld
    Recession doesn't affect my retirement savings plan. Keep stashing away more in emergency cash fund and try to keep my job
    May 120
  • Facebook public2
    Buy more stocks.
    May 122
  • Salesforce / Eng
    HQLY00

    SalesforceEng

    PRE
    Modernizing Medicine, TransUnion
    HQLY00more
    I have worked very hard over the last 3 years to build up a substantial poker bankroll. Retired fish will always exist and sit down at my table.
    May 130
  • New / Other
    DuQvV7y

    NewOther

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    You should have a more diverse portfolio.

    At all times.
    May 130

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