Recession cloud waves hit around every corner of the world and big tech companies announced heavy layoffs of their employees to reduce costs and survive in the market. In 2008, the recession started with the collapse of the Lehman Brothers and now we see the collapse of Silicon Valley Bank and Credit Suisse. Whatever may be the causes and errors behind it. War crises and commodity crunch have created less scope to market for finished products. The heavy burden of input costs and the energy crisis will surely lead the economy to recession. In this scenario, the world’s central bank ran against the tide by holding hard to control inflation to suck excess money which was pumped to stimulate the economy when the world went into lockdown during the covid era. Now investors all over the world are desperate to safeguard their investments without losses.
All we know is markets are falling right now very rapidly but interest rates are so high and because of that, you can now buy bonds. The government will not increase interest rates more if there is any chance they increase only by a few points. However, after a few months, the central banks will reduce interest rates to stimulate the falling economy by pumping more excess money into the market. At that time, we can sell a bond with the best rate of profit. The government pumping money will come into the mainstream of the economy and most money comes to stock markets by the equation of less supply of shares in the market than the actual market needs so it rises the share prices and the stock markets rise daily. So I suggest you invest in a big front-line stock which generates high profits. At the time of market rising, bulls prefer only value and frontline stocks because they want to be in the safe zone and will not take the risk.
