Recession-Proofing with AI: Smarter Crypto Investing in Volatile Times

Although painful, recessions are an inevitable part of a growing economy. Ignoring them while building a long-term portfolio is out of the question because, on average, a person who starts investing at the age of 25 can expect to experience around six to seven recessions before they reach the age of retirement. 

So, in this article, we’ll be looking at how you can make your portfolio recession-proof, ensuring your capital remains safe during volatile times. And later, we’ll also talk about how you can utilize a cutting-edge AI-powered tool like AlgosOne that automatically grows your portfolio. 

Why Do Economies Experience a Recession?

Recessions are defined as a contraction of economic activity that lasts over two quarters or at least six months. While some economists argue recessions can be avoided altogether, others say it’s a regular part of an economic cycle that helps productive businesses grow in the long run. 

Why is Recession-Proofing a Must?

Recessions are unavoidable; therefore, recession-proofing your portfolio becomes a necessity. This is because, during the inevitable tough times, the strength of your financial plan is tested in ways investors usually don’t take into account while making a portfolio. 

With recession-proofing, your assets become more resilient when times become tough, as compared to others. They typically do not decline in value, and even if they do, the decline is barely noticeable compared to the broader market. In fact, some investors who do take recession into account even make gains during a recession. 

How to Prepare for a Recession

Here are the ways through which you can prepare for a recession. These include: 

1. Start with a Financial Plan

Before investing, it is necessary to have a financial plan in mind because planning helps you to see where you currently stand and where you want to be in the future. Planning also allows you to test the impact of various markets and economic scenarios on your portfolio. For instance, you’re better able to calculate the amount you may need to hit a certain goal if some factors change. 

2. Use 60/40 Rule

While currently under the radar of critics due to higher inflation in the post-pandemic era, the rule has been long in practice, and many investors still use it. The 60/40 portfolio rule suggests investing 60% in stocks and 40% in bonds, as it ensures balanced growth and stability regardless of how the market performs. 

Investing in Recession-Proof Industries

When it comes to building a portfolio, it is necessary to ensure you invest a portion of your capital in those industries that have done reasonably well, regardless of your investment plan. Some industries thrive even during the recession because the demand is inelastic to changes in prices, and consumer demand is relatively stable. 

Some of the recession-proof industries are: health care, real estate, consumer staples, and utilities. 

Using AlgosOne to Recession-Proof Your Portfolio

Unfortunately, considering the ever-evolving landscape of geopolitics and macroeconomics, recessions can happen anytime, and unless you have years of experience in financial markets, you may lose money. Choosing the right stocks to invest in and rebalancing your portfolio before a recession strikes requires a lot of time, knowledge, and an understanding of the market.

This is where AlgosOne comes in. It is a cutting-edge AI-powered trade automation bot that executes trades automatically without human intervention. Its combination of machine learning, real-time adaptability, human expertise, and emotionless trade execution gives it a massive edge and allows it to execute trades with exceptional accuracy after finding the right instrument to invest in.

Here’s how AlgosOne can recession-proof your portfolio: 

1. Market Diversification and Asset Allocation 

AlgosOne not only invests in cryptocurrencies but also diversifies in stocks, bonds, indices, forex, and commodities. This ensures the user’s portfolio is exposed to potential opportunities at the right time to achieve maximum profit. 

2. Predictive Analytics

Since AlgosOne has the ability to scan the market 24/7 and then analyze vast amounts of data from different sources. Including news, social media, earnings calls, economic data (including GDP growth, inflation, consumer sentiment, etc), and geopolitical events. 

All of this helps AlgosOne’s Natural Language Processing (NLP) to avoid overexposed sectors and detect early signs of recessions. Ensuring the user’s capital is never placed in any unnecessary risk. 

3. Automated Trading

On AlgosOne, everything is handled by the trading bot. Users only need to deposit $300 to get started. AlgosOne’s automated trading ensures investment decisions are not based on emotions but rather through careful calculations and assessment of the data. 

4. Fixed APY

Unlike other platforms, AlgosOne offers one of the highest Annual Percentage Yield (APY) of over 150%, which is accessible to anyone who is on AlgosOne’s highest tier level. 

5. Human Expertise

Lastly, every activity on AlgosOne is monitored by financial experts. These experts have years of experience in financial markets and ensure AlgosOne’s trading bot is moving in the right direction. Combining cutting-edge AI technology and human expertise helps bring the best of both worlds, as where humans fail, AI intervenes, and vice versa. 

Conclusion

Having a recession-resistant portfolio is vital, as it guarantees that your capital is safe, regardless of which direction the market moves. However, doing it effectively can take years of experience and requires your continuous monitoring. 

With AlgosOne, things are changing as it automatically builds a recession-proof portfolio and continuously intervenes depending on market conditions. Ensuring your portfolio grows risk-free. 

If you’re ready to build a recession-proof portfolio, sign up for AlgosOne today and start growing your money!