How do we profit from Canadian recession?

[pawel7777]

What is really going on with Canada? Is it really that bad as the internet says?
If so, what's the best way to profit from the (alleged?) recession? Shorting CAD, TSX, or both? Or maybe it's all already priced in?


https://twitter.com/Tablesalt13/status/1697625004764955134

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[spectre71]

Buy Canadian real estate maybe maybe petroleum assets

[Churchillvv]

If so, what's the best way to profit from the (alleged?) recession?

If truly there is recession as the internet claimed, I can say there is no best way to profit from recession but there are ways of profiting from recession. The word (best) is what I disagree with. There are a lot of things to do that can profit you during recessions but I don't know your perspective weather cryptocurrencies or general, generally speaking investing in things like health care services,  consumer Staples, Utilities etc this sectors resist recession the most. No matter the situation people most eat, be healthy and so on. So investing in this sectors will make a lot of profits.
For cryptocurrencies, the one and only advice is BUY MORE BITCOIN/ INVEST MORE ON BITCOIN that's another way to profit from recession.

[The Sceptical Chymist]

Or maybe it's all already priced in?

Just thinking out loud here, but if you're planning on trying to make money because of something somebody tweeted, and assuming it's 100% accurate, it's more likely than not already priced into whatever asset you'd have to buy or short already.  I have no idea who that Twitter member is, but I do know that these days way too much emphasis is put on the loudmouths on that platform--even the mainstream news outlets tend to give too much credibility to whoever says the most outrageous or inflammatory statement.

And by the way, Canada's in trouble?  No surprise I hadn't heard anything, but it would be a surprise if it turned out they're in for a crisis that'd take them more than a year to get out of.  Their government and way of life seems to be at least twice as stable as the US, and I'm not sure about their monetary policies but they can't be as bad as what the last 4 or so US presidents have put our country through.

For cryptocurrencies, the one and only advice is BUY MORE BITCOIN/ INVEST MORE ON BITCOIN that's another way to profit from recession.

I'm as bullish on bitcoin as anyone else, but I'm also a realist and it hasn't yet achieved safe-haven asset status.  In a crisis I wouldn't bet on bitcoin being any less volatile than it traditionally has been.  If I had cash, I'd be sitting on a pile of it off to the sides just waiting to see what exactly is going to happen and where the opportunities are when it does happen.  When in doubt, ask yourself: "What would Warren Buffett do?".

[gunhell16]

To be honest, there is also a bit of difficulty in surviving in a time like that the country of Canada is facing, and the number one affected right now are the Canadian citizens. Apart from real estate, which is good to do, I think it is also good for Canadian citizens to know the programs that their government has so they can make money.

And aside from investing wisely, people in the country also need to increase their emergency savings. Then they should also reduce the debt so as not to add to the problem,  instead, if there are still debt fees, they should be gradually reduced until they are paid for less stress. Therefore, in these situations, the citizens need to handle the budget strongly in that regard.

[dansus021]

No No Bro don't short anything at this point you might already be late but if you like the high-risk high reward then go ahead. if I had the capital right now I surely go stock on TSX since Canada has big gas and oil and mineral buy companies that are related to oil and mineral I think is a good idea.

Bank and properties will be hit hard but energy and commodities won't so you can easily know what sector that still generating profit when the recession happen but again if you have the capital and want to the High risk high reward you can buy all of the sector and see couple of percentage or even hundred percentage of profit when the economy back to normal.

[takuma sato]

Canada is no different from anywhere else in the developed world. Im not following much Emerging Markets these days since I don't hold any equity here, however, Canada is filled with cheap fiat duat massive QE period from the Covid pandemic when they printed a ton of money to save businesses from bankruptcy and from consumers themselves to be able to buy stuff as they were locked. This can has been kicked for a while but as interest rates are raised, you can bet that sooner or later recession will hit once all this debt gets updated to said interest rates. With good timing there is when you would short the market, or just wait in cash to buy in cheaper.

Will BTC perform in this environment along gold? who knows, personally im just looking forward to add up on an SP500 position as well as hopefully get in on overbought individual stocks like TLSA and NVDA which should crash the most given current PER ratios.

[adaseb]

I live here and it depends what province you live and whether you are a home owner or not. The biggest issue is most of the population of Canada lives in either Vancouver or Toronto (or surrounding area) and these two in the past couple of years had crazy rent prices. We had large immigration recently and it only made it worse.

I am talking about $3000 to rent a one bed room apartment. Most can’t afford this so they share a room. It’s not like this in every city however. Many other cities are affordable. But everything else is expensive like food, utilities, insurance, etc.

[mvdheuvel1983]

Some weeks ago it was the Netherlands in recession, now it is Canada. I recall watching an interview with a Canadian professor of economic last month where he predicted that Canada was already entering a recession. It comes as no surprise. All fingers are pointing towards the higher interest rates that's slowed down the economy.

Bank and properties will be hit hard but energy and commodities won't so you can easily know what sector that still generating profit when the recession happen but again if you have the capital and want to the High risk high reward you can buy all of the sector and see couple of percentage or even hundred percentage of profit when the economy back to normal.

I don't think that properties will be hit. These mass migration to Canada from all over the world which has increase the prices of apartments and airbnb. So even if the locals cannot afford it due to the recession, the migrants would.

[dothebeats]

Not entirely sure who that tweet is from, and just a reminder for everyone that just because a Twitter/X account is verified it doesn't mean they are already professionals or relevant as the blue verification mark can be bought with a premium subscription now, I wouldn't worry much about this tweet unless a major website or news site that deals with world economic information states it. Besides, in the last 94 years since 1929 recession has happened in Canada (exactly 13 recessions of various sizes). From what I heard from my family members living there, those who are living in Toronto and Vancouver (and some surrounding areas) are experiencing a significant rise in rent, but outside of those areas, it is pretty much fine aside from the rise of prices of food and utilities.

As for how we will profit from it, we have to see first if this is true and how the market will actually go to make a definite decision.

[Poker Player]

I don't see any reason to short Canadian currency that you can't use to short Bitcoin or whatever. If you think you're good at it and you want to take a risk, go ahead, but I'm more of a long-term investor, not worrying about the ups and downs of the market, without timing the market or speculating. In any case, if I knew the Canadian economy and its companies well, I would take advantage of buying cheap now for the long term.

[benalexis12]

In Canada, I have a cousin who has been employed there for more than 20 or 20 years. She also previously informed me that living in Canada is difficult. They said that you must work there in shifts or on a part-time basis if you only have one job there. Because the salary is quite high and the costs are also very high. In Canada, the majority of people pay with credit cards, therefore it's similar when the house rent is a bit pricey, She uses credit cards to pay. She claimed that in order to avoid starvation and make it impossible for others to help you, you must be extremely strategic in that nation.

[MusaMohamed]

What is really going on with Canada? Is it really that bad as the internet says?

The whole word is in recession but there are sparsely news about it, nation by nation. Governments and media even try to hide it with a creative term like technical recession. Lol, technical recession, what does it mean?

Just look at labor market, unemployment rates, how purchasing power in communities drop a lot since pandemic Covid-19, it's enough to know what is happening with global economy, not restrict in any nation.

Short those asset is risky as you see what happen with $RUB in 2022. USD/RUB bounced back and kill many short positions.

Buying gold, silver if you don't like Bitcoin. If you have bitcoin, ignore gold and silver, buy more bitcoin.

Germany, technical recession

[davis196]

The guy, who tweeted this is pretty much overreacting and trying to spread panic.
The Canadian economy might enter a recession, but I don't expect a financial disaster and a "great depression". Canada has lots of natural resources and there will always be a global demand for natural resources. The Canadian economy is deeply connected to the US economy and I'm sure that the USA will get out of the recession very quick.
The only way to profit from a recession is to wait for the asset prices to drop and then start buying. I'm not a big fan of shorting, because there's higher risk involved. It's way safer to just wait for the prices to drop and buy the dip.

[Fivestar4everMVP]

The guy, who tweeted this is pretty much overreacting and trying to spread panic.
The Canadian economy might enter a recession, but I don't expect a financial disaster and a "great depression". Canada has lots of natural resources and there will always be a global demand for natural resources. The Canadian economy is deeply connected to the US economy and I'm sure that the USA will get out of the recession very quick.
The only way to profit from a recession is to wait for the asset prices to drop and then start buying. I'm not a big fan of shorting, because there's higher risk involved. It's way safer to just wait for the prices to drop and buy the dip.

I completely agree with you, shorting a currency no matter how bad it seems is very risky because you never can tell when it will reverse and start going up, the few times I've tried trading futures in cryptocurrency, I've made more profit going long than shorting, so from this , I learnt never to short a currency that is going down but rather , wait for it to go down then long it when I feel it's already in the deep and ready to shot up ..

This same scenario I believe applies to the forex market as well, and besides, speaking about Canada and recession, no matter how bad it seems, I think the country will come out of the recession pretty soon, so personally, if I wanted to make any profit off this, I would rather wait for the deep, then long CAD, rather than shorting it .

[pooya87]

Shorting CAD, TSX, or both?

Considering how these days the strategy that almost all countries are using is to increase the interest rate to prevent high inflation, the chances of fiat currencies of said countries to dump hard is low because the side-effect of increased interest rates is an artificial rise of fiat value.
The best example of it is United States and despite all the odds they have significantly decreased the dump of USD by increasing the interest rate.

The interest rate in Canada is currently at an ATH in the past 20+ years. So if you wanna short CAD wait for the interest rate hike to fail or to reverse then do it.

I can't comment on the stock market though.

[teosanru]

I think only way to profit in any recession is always to buy a chunk of things everywhere. Like real estate always gives you good profit if bought in tough times. Infact better would be to buy these real estate from bank auctioneer. In these cases you can buy at a even lesser price and I have heard most of the millionaires are made during recession times.

[Spaceman1000$]

What is really going on with Canada? Is it really that bad as the internet says?
If so, what's the best way to profit from the (alleged?) recestision? Shorting CAD, TSX, or both? Or maybe it's all already priced in?


https://twitter.com/Tablesalt13/status/1697625004764955134

I don't really agree with some of this speculations, because the Canadian economy is still one of the best in the world, as even more U.S citizens prefer to migrate to Canada due to how favourable it is over there. if the economy is that  gloomy maybe we would have seen more outcry but wanting to Equate it to that of third world country, is something I will find it had to agree.

There is really no specific way to benefit in a recession, because it comes very hard on your pocket. Economists always find it hard to deal with recession, because it comes with inflations and other multiplier effect on the economy.
But you do well, to invest in Bitcoin, and also you could diversify your  source of income, just so that you can beat the recession.

[andyou1234]

Currently, almost all world economies are in difficult conditions, this is unavoidable for Canada and other countries.  this situation is not something that has never happened before, for example the covit 19 pandemic a few years ago, where the incident has devastated the world economy, here it is very important to maintain a long-term perspective when considering the impact of a recession on certain countries, such as Canada is  one of the countries that has a lot of natural resources, Canada's economy is closely related to each other with the US where they have long been cooperating both in terms of savings and loans and export imports, as we all know today the US economy is the mecca of the world's global economy,

 It is very easy for those who have abundant money to be able to multiply the assets they have, including buying real estate, gold, even BTC, but for those who have mediocre assets saving is one way to maintain depreciation  the assets they have, because the impact of this recession is very large where every country that is being hit by a recession can result in a reduction in people's purchasing power for certain products, be it from industry, trade, services or transportation, this is due to the slow pace of economic turnover in  and abroad, of course this is very worried about by all groups, even though it did not last long, the consequences that were caused were extraordinary,

 If you want to take advantage of this phenomenon, I think buying assets that have high selling power in the future is the right decision, of course this is not as easy as turning your palm, because the profits to be earned must go through a process and a period of time the long one.

[stompix]

What is really going on with Canada? Is it really that bad as the internet says?
If so, what's the best way to profit from the (alleged?) recession? Shorting CAD, TSX, or both? Or maybe it's all already priced in?

Better ask advice from the people around here who shortened the Euro when it was 'collapsing" against the dollar going below 1:1 thinking it will to half of that as Europe burns in flames! It was an enjoyable topic about doom and gloom that of course turned empty when the loom and doom didn't materialize.
That guy on Twitter is just posting clickbait and rage bait material, an easy way of gaining an audience, there are millions of people in this world who just love negative stories, they want economies to collapse, and they want to see lives ruined, feeding them with stories about crashes and so on guarantees you a bunch of die-hard followers.

Now looking at this from a realistic point of view, are you seriously going to look for advice here where there is one Canadian in a thousand users and the majority have not one clue about the state of the economy? Short the CAD for what, it was 0.8 in 1990 it peaked at 1:1 in 2011 and it's 0.74 now, you really want to dump that much into this or risk a ton on high leverage for, what returns?

I live here and it depends what province you live and whether you are a home owner or not. The biggest issue is most of the population of Canada lives in either Vancouver or Toronto (or surrounding area) and these two in the past couple of years had crazy rent prices. We had large immigration recently and it only made it worse.

And you're going to get more if that student loophole isn't fixed, not even counting the 1 million that somehow were forgotten in the statistics, if you're building 1/10 of the homes needed by that immigration wave expect the prices to go up till something fixes it, either business moving out of to more affordable places along with the workers or new cities taking the initiative and start building to keep up with the demand.