Battening down for the Recession - Aussie Stock Forums

Results 1 to 4 of 4
  1. #1

    Default Battening down for the Recession

    Hi all

    I'm new here, although not new to trading, and am interested in kicking around some strategies for recession trading. The last true recession (by my reckoning) was in the 1980's and I was only a whipper snapper then so have very little idea as to financial long term recession planning.

    My thoughts so far are:
    Consumer Discretionary - short
    Consumer Staple - swings and roundabouts
    Energy stocks - long
    Renewable - long

    Anyone care to put in their 2c?

  2. #2

    Default Re: Battening down for the Recession

    gold maybe

  3. #3
    explod explod's Avatar
    Join Date
    Mar 2007
    The Bendigo gold fields, Victoria
    Blog Entries

    Default Re: Battening down for the Recession

    Quote Originally Posted by Flying Fish View Post
    gold maybe
    And food, WOW and Warrnambool Cheese and Butter (not sure of code)

    But yes in the previous recessions bullion was the best.

  4. #4

    Default Re: Battening down for the Recession

    Kohler's recent commentary in the Business Spectator "The United State's of Irrelevance" talks about the "de-coupling" of the US economy from the rest of the world, but Asia in particular. This should be read when considering strategy.
    He refers to Rio Tinto's chief economist's assessment that a US fall into recession, and decline of $USD would impact China growth by less than a percentage point ; and even less than in the case of India.

    The suggestion is that financial/investment flows will adapt towards economies with better investment prospects , and towards infrastructure etc in these growing economies that will continue to support commodities.

    The US adjustment will be painful domestically due to the current import reliance and the high oil-price environment.
    But is this the recession that the US had to have??? (or just Karma...some would say)
    Remember the Keating J-curve effect. ie, the lower USD stimulates US exports/ discourages imports. This is underway...eg, sales of US manufactured vehicles in Canada are booming. Great also for those outside the US looking to stock up on arms & military hardware......

Similar Threads

  1. What would it take for an Australian recession?
    By alwaysLearning in forum General Investment and Economics
    Replies: 20
    Last Post: 12th-January-2009, 03:51 PM
  2. Credit Debacle the start of an imminent Recession
    By lbradman in forum International Markets
    Replies: 64
    Last Post: 13th-October-2008, 09:02 AM
  3. Global economist David Hale on the economy, recession, and political assassination
    By son of baglimit in forum General Investment and Economics
    Replies: 1
    Last Post: 8th-October-2008, 10:32 PM
  4. Has the recession begun?
    By numbercruncher in forum General Investment and Economics
    Replies: 57
    Last Post: 22nd-August-2008, 07:05 PM
  5. U.S. may already be in recession....
    By tronic72 in forum International Markets
    Replies: 3
    Last Post: 10th-January-2008, 02:38 PM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
Aussie Stock Forums