How to Invest If You Worried About the Looming Recession

WRITTEN BY Dan Kent | UPDATED ON: August 30, 2019

Investing In Canadian Markets

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Most financial experts and people with an insight into how the global economy works agree that there is a major recession looming around the corner. It’s also evident that the ongoing trade wars between the US and China, coupled with a housing market that is showing signs of having hit a ceiling is playing a major role in the situation.

Naturally, this is causing concern all over the world and invests who have been buying stocks are planning their exit strategy and are looking for alternatives for their funds when the market finally turns. Now, there are some very well-known strategies for this, and markets that are considered “safer.” I’ll talk more about the safest market of them all below.

However, this time around there might be a unique investment solution that could save you from the worst of the upcoming economic crash.

Protect Your Funds with Gold

As mentioned, I’ll start off by mentioning the most common security blanket for investors, especially those in retirement: gold. Typically when the market crashes or a recession is looming, investors put their money in gold. The reason is that gold has a rather stable value.

In fact, this is so common that gold and the stock market have a unique bond with price movements that mirror each other. When the stock market grows, the price of gold decreases. And when the stock market falls, the price of gold increases.

This is one of the oldest tricks in the book and an easy way of getting a bit of protection against a potential recession. There are also several ways one can invest in gold, using everything from stockbrokers or ideally the best trading platforms and brokers of Canada.

But there might be a better solution and an even more prosperous market to use as a shield.

Invest in Canada and Protect Your Funds

Even though the US and Canada share a border, have close economic ties, and usually support each other on a global scale the two countries’ economies are currently heading in opposite directions.

For example, predictions say that the US GDP is set to slow down over the next 12 months but the Canadian GDP is more likely to pick up steam. Also, since Canada has kept itself out of the ongoing trade war, the country’s economy hasn’t experienced any negative side effects from it. Some might even argue that the trade war has helped Canada become more resilient against global economic mishaps.

Another major difference between Canada and most of the Western world is the housing bubble or rather the lack of one. You see, in the US and abroad, housing prices have been pushed through the roof without a solid reason as to why. In Canada, on the other hand, prices have gone up due to a lack of supply. The Canadian housing market has even been downgraded from high vulnerability to moderate vulnerability.


All things considered, the global economy is headed towards a major recession and the US is spearheading the development. Therefore, it might be a great idea to try and get out of any US-bound investments. And, by the looks of it, Canada might be the safest place to protect your funds. 

In fact, while the US and large parts of European economies are moving towards a recession, the Canadian economy is showing signs that it might continue growing even through the worst of the crash. So, in case you want to avoid the status quo of putting your investments in gold and waiting for the market to pick up again, you could look into investing in Canada.