Question: Which current day assets are most likely to trend upwards with high inflation, recession or depression looming on the horizon?
Answer: Deflationary assets, in cases where reductions in supply are expected.
In practice, this might apply to the following.
- Fossil fuels
- Food and Agriculture
- Parts and Components Restricted By Supply Chains
- Guns and Ammunition
- Water
Supply of fossil fuels is declining off of a number of factors, which could contribute to appreciation in value.
Supply of food and agriculture are generally declining, contributing to higher prices.
Parts and components are declining in supply, due to restrictions imposed by the recent USA vs china trade war.
Guns and ammunition supplies could decline due to newly introduced gun regulation, lawsuits and restrictions.
Water shortages are becoming a bigger issue globally, due to drought and a number of other factors.
While it is unfortunate that many of these negative trends are contributing towards overall reductions in standard of living for people across the globe.
These negative trends could also be profitable for some in terms of investment or businesses which cater to shifts in supply and demand.
Deflationary assets are generally good ventures to explore upon even without a recession imminent. It has everything to do with timing. You time your investments when the value is still low, and you're sure to profit provided that nothing undesirable happens.
If I may just add one to your lists of great physical assets to invest upon during recession, I would suggest Real Estate. It has been proven and tested, Reap Estate recovers after recessions and depressions because people need a place to stay, one way or another, and recessions render real estate cheaper due to the urgency of greenbacks necessity during these trying times. So for me, real estate is a good investment which could become great when the right opportunity arrives.
