2023 Recession on the Horizon: The Dark Clouds of the Global Economy?

The World Bank has announced that the risk of a 2023 recession is increasingly evident due to Russia's ongoing invasion of Ukraine. Recession itself is a phenomenon of worsening the world economy due to inflation or price increases.

So, what are the preparations that must be made to face the 2023 recession?

Check out the answer in this article!

Tips for Funding and Investing in the Midst of Recession 2023

Even though the 2023 recession is almost certain to happen, you can still do funding and investment. According to one of the well-known content creators, Ferry Irwandi, here are 3 advices for funding and investments that can be made in 2023.

1. Reduce Investment in Instruments That Have High Volatility

Investment is a fairly effective way to counteract the negative impact of inflation. However, in the midst of the shadow of the 2023 recession, it's a good idea to choose an investment instrument that is classified as a safe haven.

For example, deposits, gold and securities issued by the state. Even if you want to invest in stocks, you should choose to invest in stocks that are engaged in a defensive industrial sector, which is able to survive even though there is a crisis.

2. Funding to the Rill Sector

Real sector investment is an investment in real assets that are visible and clear in their form. For example, buildings, houses, land, and precious metals.

Precious metal instruments are one of the real sector investments that tend to be easy to sell compared to other assets and have a stable movement.

That's why the real sector can be an option for funding during a recession.

3. Increase Cash

The increasingly tangible risk of a 2023 recession makes increasing the share of cash holdings considered more necessary. Financial Planner, Andi Nugroho said that cash is very important to be capital when difficult situations hit because having money can finance you when the impact of a recession occurs on you.

For example, there is a termination of employment (layoffs) at the company where you work or if the business being run is affected by the recession.

In line with that, also postpone expenses that can be delayed and you don't really need, especially for expenses that are in the nature to meet your lifestyle.

Why is it advisable to hold cash?

Because if you put all your assets on an investment instrument, it will take you a long time to cash it out when it is really needed. If you have cash, urgent needs can be resolved immediately.

Until we are at the end of this article.

Hope the article will be useful!

Disclaimer is also to keep adjusting financial management according to your risk profile and investment needs.