Submitted by death_avc t3_z8x0qq in wallstreetbets

He guys i’m from india our stock market has been performing extremely well and is trading at a premium. Many stocks with shitty fundamentals are up for no apparent reason. Sensex which is our equivalent of Dow will see a sharp correction in a month or so i’m certain.

What would you guys do if you knew a recession was coming beforehand how would you position yourself for it.

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VisualMod t1_iydpp3o wrote

>If I knew a recession was coming, I would position myself by selling all of my stocks and investing in safe assets such as bonds.

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death_avc OP t1_iydtf5p wrote

yeah but i want to make a killing safety is not what i’m looking for.

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origami_asshole t1_iydpwzd wrote

enough cash so you can think clearly when trading.

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death_avc OP t1_iydrirk wrote

Have booked my profits mostly still hold few fundamentally good stocks which i will average. But how to make money is the question.

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difficulties00 t1_iydql9k wrote

In india..India... load up on gold.

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Fibocrypto t1_iye1s9h wrote

I'd make sure I was out of debt.

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ZyntaxB t1_iydvkbe wrote

Short it

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death_avc OP t1_iydwb6k wrote

naked short selling is not allowed because some boomer in our government lost all his money plus wife daughter to the loan sharks in 2008 crash.

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imking27 t1_iydxgxi wrote

wrong all are allowed assuming you follow the rules there is some sho rule and that you have the appropriate level and your brokerage lets you. I can short sell stocks right now, but would need to go up to be able to short options naked and then go up another level for index shorting.

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death_avc OP t1_iydxuqo wrote

good opinion but we are talking about india 🗿

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prashant13b t1_iye5yx9 wrote

It’s not allowed in low liquidity stocks . You can naked short on intra day or short future as positional trade

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Nonbinary_Tea t1_iyeb2wc wrote

It's really hard to say if there will be x or y in a market as volatile and unpredictable. Many think for sure based on x to be true, y must happen. Like today when rates go up, generally equities go down. But many puts just got liquidated..or are about to. You really never know.

So if I knew for sure a recession were coming id make bets based on that hypothesis and wait for confirmation in whatever way I could to justify that position.

If recessions happen you may want to look at calls on staples- idk about India but in usa that'd be consumer defensive plays.

If war is coming you naturally look at defense stocks

If recession is coming you stay clear of banks, or you may want to put some bets that banks will decline (they typically do).

You'd be looking for whatever trends you can find from previous recession to give you an idea where to bet what.

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Dothemath2 t1_iyehb20 wrote

I was buying puts on the US Dow Jones Industrial index. There are bear market rallies so it goes up and down. Scary to be in the market. Emotional roller coaster. Expect wild volatility and close positions when you are profitable. I just made a mistake a few hours ago and lost an opportunity.

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hashtagyashtag t1_iyejow2 wrote

I’d do what my fathers and their fathers did before me. suck a dick for bus money and then walk home.

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