Recession is near ......watch out !!!Read these articles here ,
I am not a scholar to know what the government sleeves are up to but this article spells something is brewing round the corner. If you read some of my articles last year, I did say that I expect the Feds to start lowering the interest rates as unemployment figures will begin to climb higher. So far, the latter has not happened though we witnessed many tech companies reducing their head counts.
Food prices around the world have gone up drastically together with property prices with the exception of your salaries. Think about it , many countries like China, Singapore, South Korea, etc are experiencing aging population with low birth rates. As the workers get into their late 40s , it becomes harder to find a job that pays the same or higher. So, they are stuck in their current job, many are unhappy but for the sake of their mortgages , they have to suck thumb and stay with it.
Then another trend appears - part time and freelance jobs. For those who has little choices, they have to double up to take on extra jobs after their working hours just to make ends meet. From being a tutor to becoming a Grab food delivery rider. We all agreed things back in our grandparents days were much simpler and things definitely costs less. They have fewer wants and needs so even with lower wages, they can get by. We are in a different era now.
Regardless if you think Gold is a productive assets that generate returns or not, it is still in the mind of many (including the Government) to buy gold when recession is forthcoming. When will this change? I don't know. Just be a trend follower and ride the wave out .
Just remember, not to stake all that you have but allocate a fixed percentage (5-10%) of your capital to different assets class. That way, you are insured that at any point in time, the probabilities of a total collapse of all asset classes is reduced. Think harder, if your earned income become lesser, your reserves to set aside for investment should naturally reduce as well. That means, your spread to different asset class also reduced.
So, finding other sources of income become even more crucial in times of recession coz nobody knows for sure when you are going to be replaced.
