I wanted to start a discussion about potential ways to make some gains even during a recessing economy, and high inflation. Here are some ideas, feel free to critique them in the comments.
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Reduce your margin / prevent margin calls: if your collateral is spiraling downwards, its probably good to decrease or entirely eliminate your margin until we have hit the bottom, then slowly increase margin on the way back up.
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Buy blue chip, recession proof stocks. Optionally, sells cash secured puts and use the premium wisely (if the stock drops further, you still get to lower your cost basis).
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Watch for cyclical stocks to gain momentum: pretty self explanatory, watch for sector rotation as the economy starts to pick back up again.
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Use some of your dividends from safe investments to branch out into the more risky investments. Play with the house's money.
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Shift your risk to be more conservative. Treasury bonds, gold ETFs, safe bonds of recession proof companies, etc, all of these could be added to your portfolio in small amounts to hedge against wild drops.
Sadly, we are going to lose our buying power due to inflation, and the economy may go through some contractions, however, I believe that now is a good time to find winners for the next decade, and slowly accumulate, even if the market is dropping. It could be a good buying opportunity.
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