How I prepare for 2023 recession.
In OXINION Portfolio, its 100% equity positions. Do i worry with this current position? Absolutely not. Its super concentrated portfolio with only 4stocks/ETFs that i know. Will get rid of covered call ETF in the end.
S&P500 70% | MSFT 20 | COST 9% | QYLD 1%
In Haim Portofolio, there’s only 2 picks which are S&P 500 ETF and Dollar. This is my family fund so this is made with only KRW.
S&P500 70% | USD 15% | KRW 15%
In Infinite Capital, It seems like international position now. But it can be changed in the future. Thanks to cryptos, i made continuous cash flow. This is still a tiny one as i keep making mistakes with trading. So, i will never do trading anymore. To be honest, i do not like inverse options trading. But the amount of money i getting from crypto market is still so little and trying to increase. Once i’m able to focus only the main holdings, i will drop everything including inverse ones. Once my Binance Earn product gives back enough interest, i will sell everything to focus on ASML, LVMH & Tencent.
ASML 60% | LVMH 25% | Tencent 15%
Stagflation, such a scary word.
If interest goes higher, spending/investment will decrease while savings increase. People will tend to get less loan due to high interest and most of people get mortgage loan to buy a house. In the end, the overall growth will get slower. So, i’m trying to diversity some assets like options, currency rather than only stocks. Will invest in companies that has a pricing power.
Firstly, Tencent.
I know there’s a geopolitical risk from Chinese government. But they are no.1 company in China and global gaming holdings.
Alternative 1, GOOG.
No need to explain. Information is money and power. They own the most in 21c. Just buy and hold.
Secondly, LVMH.
Everyone want a luxury goods like Ferrari or Birkin bag. I want to buy Ferrari Roma and Maserati Cielo and want to buy a Tiffany ring for my future wife. The demand will never stop in the future. Also, those companies will increase the price every year.
Alternative 2, HD.
I want to buy a house in Gangnam, Seoul & Soho, London. VNQ ETF is the alternative if you do have less cash. House is a necessary thing to own.
I believe in equity for a long term and will do better than any other assets. But during recession, everything will be crushed.
The stages of incoming recession.
Firstly, assets like stocks and real estate will show a bear market rally first.
Secondly, vulnerable countries like Korea, Turkey, Greece or Eastern South Asian countries will show a slow growth or declare bankruptcy. So, those local currencies will get weaker, compared to USD.
Thirdly, assets like stocks and real estate will be at the bottom. So, it’s time to buy everything without worries.
Here’s one thing to keep in mind. “Keep investing in America while controlling your cash position.”.
Do you know why you have to keep investing even though you know you are going to loose? Because nobody knows when the recession will end. If the asset is making a loss, just buy and do the cost average down. How do we know when the recession will come and even if it came, do you know when it’s going to end? of course not.
One of economic theory i recommend to read. This is also a theory so we will never be able to predict so keep investing with the amount you are willing to loose. Always keep in mind that you can loose money if you do invest.
In conclusion,
I would refer a Korean movie’s words from “Default”. Crisis repeats itself. However, a crisis means that the opportunity to change your life is increased in other words. This is not to say that an economic crisis is coming soon. But the chance to get rich comes to those who are prepared.