If a recession is coming in 2019, should I sell my stocks?
If a recession hits, holding or liquidating your portfolio depends on the type of stocks you own.If you are an investor who’ve planned to hold a stock for a decade or so, you don’t have to think of selling the stock even during the recession.Good companies with long business histories can handle prolonged periods of weakness in the market.For this, even if a company’s probity is strong, you'll have to make sure its Balance Sheet Reports, Cash Flow, and Debt-to-Equity ratios are all in place during the downturn. These are the major factors that help a stock handle tough economic headwinds.In simple terms, a stock with more debt in a recession is likely to have a greater risk of default. So, it is never encouraged to hold such stocks at any given time.Okay, if you trust your investment strategy, instead of selling the stocks fearing the recession, you should probably buy more of them during their lows.However, if you are skeptical of your investment decision, it is better to simply sell them off and buy them back when they are back on track.If you are a trader with technical knowledge, during recessions, you shouldn’t just Sell; you should Short Sell.Yes, shorting Equities & Futures or buying puts will do wonders.For those who don’t know what “Shorting/Short Selling” is; Stock Market is not all about buying low and selling high.During a recession, it is pretty obvious that the stocks prices are also going to fall.Here, if a trader identifies a downtrend, he/she can first sell the security and then buy it back at a much lower price. Just the inverse of the traditional Buy Low & Sell High concept. Interesting, right ??Yes, a trader can make $$$ irrespective of the direction of the market.Stocks tend to fall faster when compared to their own growth.To be brutally honest, traders like us literally crave for a Stock Market Crash every month. If you know what I mean.Happy Trading !!!
Why do libs avoid President Bush's Accomplishments?
Great post! Libs quake at the thought of people who do things the right way.
Why would Keynesian Economics work?
Only everything. Actually, Keynesian Economics has NOTHING to do with taxation. It has to do with getting out of a recession, of which taxation is a detriment. Hence no wide scale tax raises have occurred recently. Keynes simply wanted government to take up the slack in economic spending that individuals and businesses were no longer doing. That's it. Neither business nor individuals can prime the economic pump during a recession. Edit: Huh? Tax cuts? Really? You have to have income to tax for there to be cuts. Last I checked cutting the tax rate on zero income is still zero income. AND it's SPENDING that's the problem in a recession. In a recession, money kept from a tax cut will more likely be SAVED, instead of spent. That feeds the recession. kind of hard to have productivity WHEN EVERYONE IS OUT OF WORK!!!! Again, Keynesian model has nothing to do with how to get out of recession with taxes. Put ALL taxes to ZERO, knock yourself out. The recession will still carry on. It would have no real effect.