With economic and political turmoil in Europe, the longest US stock market bull run in history and a slowing Chinese economy; one must question if we might see an Australian recession in 2019.
The Australian economy faces three concerns that make a recession seem inevitable in 2019. It has not experienced a recession in 25 years, the nation’s major trade partner is China and the Australian housing market is slowing.
Even if recession doesn’t happen this year, I believe it’s inevitable it will happen in the coming future.
So, you may be asking, what possible steps will I take to defend my portfolio and finances, and profit from this inevitable market cycle?
Here are my top three strategies:
Bet on Bitcoin
Bitcoin has spent the past year correcting from its all time highs and lowest of lows.
However, if there is ever a time that Bitcoin could be used as a hedge against our fiat
economy, it’s now.
Bitcoin, in my opinion, is becoming digital gold.
In 2018, and leading into the first quarter of 2019, we have seen Bitcoin consolidate at
an optimal market entry price.
Currently we see Bitcoin used as an investment vehicle in global markets by institutions, traders, and private investors.
Due to its fixed supply, owning a portion of Bitcoin in your portfolio offers a potential value increase when a recession hits.
Take Advantage of the US Dollar
The value of the Australian dollar is a reflection of the state of the Australian economy.
The best way to guard against this is to diversify part of your cash reserve into US dollars. By doing this you will be naturally defending your cash from devaluation.
Why the US dollar? The US dollar is the number one global reserve currency.
The graph below indicates the Australian dollar losing value consecutively over the past 10 years.
You can use the USDC coin as a pathway to get a fee-less exchange rate when converting your Australian dollars to US dollars.
Hope for the best, prepare for the worst
You don’t buy gold in the hope of swift price increases. You add gold to your portfolio as a form of insurance.
When the rest of the economy is in free-fall you can exchange the gold for another asset class and buy a lot more of that asset then you could have from paying upfront in cash.
Using audited gold asset backed tokens such as DIGIX, you can easily diversify your portfolio a dollar at a time to a token backed by audited physical gold.
Recessions are not to be feared but to be respected. View your portfolio with a defensive mindset.
A strong defence paired with proper planning, allows portfolio protection and profit by buying back assets at a cheaper price.
In 2019, Blockchain makes preparation and diversification easier and more efficient providing investors, traders, and institutions a hedge against the global economy.
The views expressed in this article belong to the author. Content on the Micky website is not intended as investment advice. Readers, viewers and listeners are urged to conduct their own research before making any investment decisions. The cryptocurrency market is volatile and there is a chance you could lose some or all of your money.