How to MAKE MONEY in the Next Recession | What I Did Last Time. Recession 2020

How to make money during a recession? How to prepare for the next recession, possibly in 2020. The market has been on an 11 year bull run. Undoubtedly we will face a market crash soon. There are already signs of an impending 2020 recession: the inverted yield curve, the tariffs on China, all time high levels on the markets.

Here is a step by step guide on how to make money in the next recession. I include some tips from the last recession in 2008 and how we profited from the 2008 market crash.

For the risk averse you can either hold onto your investments and ride the wave of the recession out, or you can be a bit more proactive and de-risk your stock portfolio. Invest in more blue chip stocks, consumer staples stocks, commodities, and fixed-income markets like bonds, t-bills, CDs, and notes.

For those looking for more risk you can essentially be net short during the next recession. There are many ways to short the market. You can obviously short individual stocks but you can also short the market by buying inverse ETFs. The Russell 2000 small cap index is littered with companies that have high beta stocks, undesirable balance sheets and little to no income. You can also long volatility by buying VIX-related ETFs.

List of volatility ETFs tied to the VIX: https://www.etf.com/channels/volatility-etfs

Top 4 inverse ETFs for a bear market (in a recession): https://www.investopedia.com/investing/bear-market-etfs/

4 ETFs to short the market (like in a recession): https://www.investopedia.com/articles/etfs/top-etfs-short-market/

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