Being resilient to recession in your portfolio

As of late, I've been actually tuning my head in with CNBC a whole lot. In fact, I've been re-doing my entire stock portfolio. And anyone that's been paying attention to Wall Street at all should know that we've been in a downturn for the last few months.

This doesn't mean you can't make money though. With Ben Bernanke, fed chairman, announcing that we might be in the recession right now, the US markets actually have been holding well in the second day of the second quarter. In fact, most tech stocks seem to be half up and half down.

Within domestic markets, technology and such might be on a down but then commodities are up. There are many different types of trends involved when it comes to how you play, especially if you play the long game. Personally, I'm shifting some of my portfolio into global markets. The practicality of this is due to the fact that while recession might hit a country, global recession is a bit less likely. Asian markets currently are actually on a downturn, but over time it's still projected to go up. European money to the dollar is higher which means it's worthwhile to look into buying the dollar. Gold has been extremely volatile lately, but it also means that it could be played of which many are.

Domestically, much of the things I've been investing in have been more based on energy, or corporations that provide a need-based structure versus want-based. These seem to do well in the long run. I haven't tried shorting much due to the fact that you would have to buy options and puts and the risk is greater. But I believe that there are still ways to reinforce your portfolio like the money managers in investment firms.

Any advice given by the author is strictly the opinion of the author. Financial risks taken are your own and it is best to consult your financial advisor before taking action.
Photo Credit: (MisterV)