How To Get Out Of A Recession (Hint: Try AI Investing)
- Economic expansion and contraction (growth, recession and recovery) are regular features of the business cycle
- When the economy swings downward, it may be months or years before consumer spending and corporate profits pick up again
- While no one person can start or stop the business cycle, you can learn how to get out of a recession in your own household
- Some key ways to prevent a recession from dragging you down include recession-proofing your career, budgeting and investing with AI
Recession fears have circulated for months, compounded by stubborn inflation, rising interest rates and unusually strong jobs data. The war in Ukraine continues to entangle supply chains and energy markets, placing downward pressure on global economies.
Meanwhile, economists can’t agree if 2023 will be one of the biggest financial storms on record or the equivalent of a light shower.
Tight housing inventory, high rents and soaring loan rates continue to squeeze consumers, while predictions flip-flop between a market crash and a gentle correction.
And investors remain wary of riskier assets like crypto and tech stocks, with many favoring high-yield cash accounts and dividend-paying bonds. (Though some sectors, like artificial intelligence, have seen a surge of new interest.)
Through all of this, it’s easy to lose hope that things will eventually get better.
But don’t give up too soon.
With Q.ai at your side, you can learn how to get out of a recession in your personal finances. And while we can’t boost the entire economy, it might comfort you to know that – no matter how it feels now – it will eventually recover, too.
Recessions occur when a country’s economy declines – perhaps slowly and shallowly, perhaps quickly and sharply.
During recessionary periods, a country’s GDP, or gross domestic product, declines as consumer and business spending slows. Lower profits tend to spark mass layoffs – like we’re seeing now – that contribute to higher unemployment numbers.
As more people lose their jobs, their discretionary spending dries up, furthering the economic contraction. Lenders may tighten their standards to acquire credit, leaving more people in a crunch.
As investment values drop precipitously, investors may cash out and park their funds in recession-proof assets and defensive industries. Those who stay may see their paper losses compound, while those who leave too late suffer heavy casualties. (And those who fail to reinvest at the right time inevitably lose out on future growth.)
Despite their potentially devastating impacts, recessions have become increasingly accepted as part of the natural business cycle. (The business cycle describes how economies experience periods of growth, contraction and recovery over time.)
Just because recessions are “normal” doesn’t mean they’re fun or easy to overcome. In fact, economies may limp along for months or years before they’ve regained, let alone surpassed, their former glory.
But eventually, a recession economy will enter economic recovery. From there, it’s only a matter of time before growth picks up.
How to get out of a recession at a national scale
Exactly what causes a recession to end is rarely straightforward – it takes a lot of moving parts to kickstart a nation’s engine.
After an economy hits its trough, it may percolate for a while. Businesses fail, people struggle to find employment, but the motor never stops running. It just idles for a while.
In response, governments often implement fiscal or monetary policies to ease financial burdens and encourage investment. The Fed may slash interest rates or initiate quantitative easing. Congress may authorize tax breaks, stimulus programs or new infrastructure spending.
Eventually, economic activity begins to inch upward. Hiring picks up, perhaps slowly at first, but enough that people regain some of their discretionary purchasing power. New businesses and innovations splash onto the market, while old ones start performing again. As consumer demand climbs, business profits spur more hiring and spending.
Soon enough, unemployment declines spark brighter consumer sentiments. Lending and investing activities pick up, increasing crucial access to credit and capital. Economic indicators begin ticking up as incomes and business activities recover.
And with enough time and momentum, gross domestic product growth returns to its former norm.
How to get out of a recession by investing with AI
The economic trends of contraction and expansion sound nice and tidy until you’re the one facing the squeeze. If you’re worried about the impacts of a recession on your own finances, one of your best bets is to build a resilient investment portfolio.
Time and again, history has shown that investing is one of the best ways to build long-term wealth. But for many investors, choosing the “right” investments is a difficult, time-consuming process. And when the pressure mounts, it’s all too easy to panic and make impulsive decisions that bear long-lasting consequences.
At Q.ai, we believe that investing should be fun, simple, and accessible to all. That’s why we leverage the power of artificial intelligence to do the hard work for you and pluck potential winners from the crowd.
Here’s how Q.ai can help you get out of a recession – or at least weather the storm with less financial damage.
Diversify with Investment Kits
Q.ai’s Investment Kits are specially tailored to achieve specific goals or capitalize on exciting trends.
You can help build the future of Clean and Emerging Tech, hop on the Crypto bandwagon or go broad with our Active Indexer Kit.
Looking to hedge against volatility with Precious Metals? Sure thing.
What about capitalizing on your Guilty Pleasures with a few well-placed dollars? Absolutely.
We also run Limited Edition Kits to help you profit from short-term trends. Whether that’s protecting your hard-earned cash from Inflation or catching a tailwind from the Global Microchip Shortage, we’ve got you covered.
With so many Kits on offer, it’s easy to build a solid foundation and diversify based on risk tolerance, personal preferences and thematic investing. Q.ai makes it that easy.
Long-term strategies for long-term wealth
While our artificial intelligence lets you invest like a hedge fund, it’s important to note that no one can guarantee future performance. That also means that we can’t promise your investments won’t take a hit when a recession does come ’round.
That said, we make it easy to think on long-term timelines. We’re firm believers that short-term trading strategies needlessly compound your risk. By investing long-term – and adding a few short-term, data-backed strategies to the mix – we can help you overcome the inevitable bumps in the road.
And since our AI can respond to real-time market conditions, you won’t have to feel “stuck” in a static, underperforming strategy.
Portfolio Protection to limit your downside
For investors seeking to limit their exposure to risk, Q.ai has an answer for that, too. With Portfolio Protection, our AI-powered technology uses advanced hedging strategies formerly exclusive to hedge fund investors.
When you activate this feature, our proprietary risk detection system predicts and responds to potential market risks. Then, our AI implements strategies to counterbalance negative market movements by moving your capital into hedging positions or cash.
In doing its job, Portfolio Protection might slightly lower your returns. However, that reduced upside is often offset by minimizing your losses.
No fees, low investment minimums and liquid cash positions
Q.ai offers a number of other benefits that position investors for long-term success.
For starters, we don’t charge for investing or cashing out returns, allowing you to keep more of your hard-earned capital.
Plus, with low investment minimums in the majority of our Kits, we work hard to keep the stock market accessible to retail investors of all income and experience levels.
Finally, our Cash Portfolio operates as a low-minimum money market account to give investors even more options. Whether you want to earn interest in an FDIC-insured account or keep liquid capital on hand for future trades, the choice is yours.
The bottom line
Q.ai’s AI-backed Investment Kits simplify the investment process and make complex strategies available for everyone. If you’re looking for ways to get out of a recession in your personal finances, investing in your future with artificial intelligence is a great way to start.
Download Q.ai today for access to AI-powered investment strategies.