800k investment against recession
I have a 500k robo fund and 800k in money markets. With rising interest rates and an upcoming recession, are there areas I could start investing in now? Suggestions for funds that will do well in a recession are welcome.
Why do you think there will be a recession? Data suggests otherwise, blind is just hopeful.
Rising interest rates are reducing capital loans and therefore expenditures. Notice the quarterly results from financial companies are below expectations. Companies are already choosing not to take out more loans. This will trickle down into the economy and we will enter recession in 12 months time.
Who is below expectations lol? Spending is up, hiring is up, companies have more cash than they can invest. Interest rates are already built in. It may slow growth which has been too hot but that's not a path to recession. Recessions come from shocks not plans. Hope I am wrong obviously but not seeing any support for negative growth. President cheeto could cause one at anytime of course.
Index fund
TC and YOE?
What interest are you getting on money market? There's some not risky short term things that have high interest rates these days
Close to 2%. I also have done another 400k in secured loans for 4%.
How did you invest in secured loans?
Farm Communes in South America, 15% yield
Low index funds or blue chip stocks that pay more than 3.5% dividend
This is what I'm thinking is best. Let's see if others have more ideas.
TC AND GTFO?
Upcoming recession? Who scheduled it? And for when?
Bonds or bond index fund do well in recession when everything is going down.
30 years ago maybe. Bonds have had a massive bull run. All the QE has altered the bond market dynamics.
So, you have $1.3 M in funds ? Why not buy a house
I own the house I live in and don't want the headache of managing rentals.
You could pay someone to manage the rental. The amount of work is minimal. That being said, I don’t think it’s a great time to buy housing either.