Will the US fall into a recession? How to protect your portfolio

For the United States to be in a recession, there must be a decline in GDP, real income, employment, industrial production, and retail sales. Currently, only a few of the boxes are checked, leaving the economy safe for now.

The mere fear of a recession in the US has been enough to crush portfolios heavy in stocks or crypto, and send risk assets into a downtrend. Combined with the US Fed raising interest rates and reducing its balance sheet, and there is perfect storm brewing for a collapse of epic proportions. 

Profits might be more difficult to come by in crypto and across the major stock indices in the very near future. But that doesn’t mean your portfolio has to suffer. Here is how to protect your portfolio and stay profitable now and if a recession hits.

Extreme fear and remembering the Great Recession

The Great Recession was a tough time on the global economy, and the first major US recession since the Great Depression. It caused the biggest stock market crash in decades. Now decades later, the Great Recession is a haunting reminder of what happens when financial markets begin to break down.

Today, in a post-pandemic world riddle with supply chain issues, war, and historical inflation levels, investors and traders are bracing for the worst: another recession. Adding significantly to the fear, the stock market, Bitcoin, Ethereum, and altcoins have suffered a powerful pullback, reducing prices to levels from several years prior. 

Macro backdrop creates volatility all across global markets

But cryptocurrencies and stocks aren’t the only markets in finance. The energy market has been heating up more than people’s homes, with incredible volatility over the last several months. Currencies have been all over the place given the dominance of the dollar during this time. Gold and silver have struggled due to strength in the dollar, but could be overdue for a breakout from consolidation and a new bull market in metals. 

Metals in the past have acted as a proven safe haven during recessionary periods, even while stocks have been in freefall. Currencies also make a great hedge against risk assets, especially if long the USD side of any trading pair. Natural gas and both Brent and Crude oil have been almost the most important markets geopolitically since the war in Ukraine began.

Trade traditional assets while you HOLD your Crypto

With PrimeXBT, more than 100 different trading instruments are available under one roof to trade using long and short positions on leverage. Of the 100 markets available at PrimeXBT, there are cryptocurrencies, stock indices, commodities, metals, and forex currencies. Traders can build a portfolio of anti-correlated and uncorrelated assets which can work to reduce the potential for loss and increase the probability of being profitabile. 

Best of all, with PrimeXBT, users can use cryptocurrencies like BTC, ETH, USDT, USDC, and more as collateral to trade not just crypto, but traditional markets as well. This means there is no need to ever sell crypto assets, and users can instead hedge spot positions with short derivatives positions.

Covesting copy trading comes to the rescue

When times do eventually get too difficult and dangerous to navigate, users of the award-winning margin trading platform can also use digital assets to copy trade other top-ranked traders, who even in this current downtrend have more than 4,000% ROI at this very moment in the Covesting leaderboards.

Covesting is a peer-to-peer copy trading community where skilled traders compete to rank the highest in a leaderboard system. This system tracks all performance metrics and displays it publicly for potential followers to see. Followers can elect to follow multiple strategies at once, essentially building a portfolio of proven profitable strategy managers.

Recession-proof ways to make money and improve

PrimeXBT also offers plenty of other ways to  make money and stay on top of your game. The platform has passive investing, built-in technical analysis software, weekly trading competitions, and a massive educational website with video tips from expert trader Dirk Hartig.

The four-level referral program provides some of the highest commissions in the finance industry, with daily payouts in cryptocurrencies. From start to finish, users can buy crypto, trade, or access a variety of cryptocurrency-based products or services, making PrimeXBT an all-in-one solution. 

Recession-proof your portfolio and trading positions with PrimeXBT

It is not a matter of if a recession is coming, but a matter of when, and how bad it will get. It has been more than 90 years since the Wall Street Panic of 1929 that preceded the Great Depression, and another history-defining crash could be on the way. But when?

PrimeXBT registration is free, and there is a free mobile app to stay connected to global markets while on the go. If you want the tools necessary to protect your capital during the coming recession, look no further than the advanced, award-winning PrimeXBT margin trading platform.

 

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