How to protect your investments in a recession
The Bank of England is deliberately driving Britain into a recession, and you need to act now to safeguard your investments.
The key rate was increased by 75 basis points on Thursday, moving up from 2.25% to 3%, the highest seen since 2008.
Of course, and as I was quoted by The Daily Express, Fintech Finance News, exchangerates.org.uk and Fortune Herald, amongst other media, the Bank of England is in a difficult position, tightening monetary policy after inflation reached a four decade high of 10.1% in September, five times more than the 2% target. The bank is also attempting to calm markets following last month’s huge fiscal uncertainty that sent the pound plummeting and hiked government borrowing costs.
As a result, we anticipate the rate hike move will deliberately plunge the country into a recession. To put it plainly, the BoE is willing to tighten its grip on households and businesses and sacrifice parts of the economy in a bid to curb inflation.
Consequently, with the UK likely to fall into a deeper than forecast economic downturn, investors with exposure to UK financial assets should review and perhaps revise their portfolios as a matter of urgency to protect their money.
Investors should consider sectors that will be resistant to recession, such as food, energy and financial services.
Furthermore, during a time of mounting inflation and interest rates, investors should contemplate less familiar, return-boosting asset classes including venture capital, structured products, cryptocurrencies, high-dividend stocks, hedge funds and managed futures.
In addition, we’ll likely see investors hiking their exposure to overseas financial assets, such as global equity funds.
With the Bank of England increasing rates to create a recession in Britain intentionally, investors should act as soon as possible to protect their investments.