Why You Shouldn’t Bet Against Soros

George Soros is a legend as far as predicting events in the stock market. One thing that he is really good at is making just the right calls right before they happen. Those who follow his advice are often happy that they have done so. As such, it is time to consider what he is currently predicting for the markets.

The Prediction

Unfortunately, the prediction that George Soros has laid out for the markets at the moment is not a pretty picture. He believes that we could easily be headed towards another 2008 style market. This was a market that took a pounding as the real estate bubble imploded and several other dominoes fell. While the problems currently underlying the present market are different than the ones that we saw in 2008, the reality is that we could easily see more pain ahead. What should you do to combat this?

Make Your Portfolio More Resistant To Recession

Purchasing some stocks that are more recession proof just makes sense. According to uncommonwisdomdaily.com, these might include famous retailers that people shop at no matter what the markets are doing. Essentially, you want to look at brands that are likely to cater to people no matter what.

The earnings of companies that cater to the consumer in all types of markets are not as likely to be hugely impacted in a negative way as some other stocks. In fact, a lot of investors tend to flock to these names when they feel that a recession is looming.

Do Not Sell Out Of Fear

The worst thing that an investor can do is sell when he or she is fearful. The temptation to do so is always there, but it is a terrible mistake to make. Selling because of an emotion never leads to the right outcome. All that happens is that you end up losing money.

If the market really is about to see some tough times ahead, it may be best to instead move some money into the recession proof names while leaving the rest of it alone. That is a more positive outlook and strategy.

Bring Your Dollar Cost Average Down

If prices are falling, why not use that to your advantage? You could purchase more stock while the prices are down and cheap right now in order to lower the cost of what you paid for things in the first place. This would set you up for more potential gains in the future when prices eventually recover.