Get to know, These Are Ways How to Mitig..

Get to know, These Are Ways How to Mitigate Amid Global Economic Recession

Nikko Indonesia8 months ago

Recently, many news and mass media announced that a global recession was predicted in 2023, which makes people panic to face the future. If you feel anxious, please do not panic.

Quote from the webinar held by Nikko Sekuritas titled 'Investasi Perlu Strategi' last Friday, October 21st, 2022 with invited Frisca Devi Choirina, a co-founder of @ngertisaham dan @investorsahampemula as a speaker, let us review how is the global and national’s condition nowadays for being aware how to response and financial mitigate appropriately to face the recession.

A Global and National Condition

If you have experience investing in stocks, you must know the macro and the micro economy, which is one of the factors that probably influenced your investment decision. Now, America has an inflation of 8,2% because of the dollar printing during the pandemic crisis. Besides, UNI Europe has an energy crisis, a lack of coal supply, and fuel-electricity prices increase by 80%, leading to an inflation of up to 10%. The Russia-Ukraine war also could not divide from this factor. This causes the consumption rate decreases, and food crises to occur in several countries, causing the economy goes slow down and lead to a recession.

How about Indonesia today?

Different from the global condition, Indonesia's economy today grows 5,44% year-on-year QII. This global crisis gives the opportunity for Indonesia for exporting coal in huge volume as a contribution towards national economic recovery. Besides, if we look into the commodity side, Indonesia does not always dependent on foreign countries because Indonesia can produce its rice, corn, and palm oil. Frisca also ensured the audience in the webinar that no need to be panic. She added that there are still good opportunities and advantages we can take. What are those?

The Time Has Come! You Should Apply Strategy in Every Single Investment Decision

If you look back, you might have applied this strategy to your investment decision before you hear about the global recession on the news. This is a very fundamental strategy which is to make sure that you use your cold money for the investment. Furthermore, you should remember your investment term (long-term or short-term) is sometimes needed. Another strategy is rebalancing investments, this is the strategy for choosing more conservative instruments such as fund cash, gold, property, and defensive stock. A defensive stock is a stable stock even though the company's performance is decreasing or there is a global economic slowdown. For example ESG stocks, such as shares based on environmental, social, and governance aspects. The last is to review your portfolio performance, if you achieved your return target, you can surely take the profit from them. Evaluating some companies sometimes is needed as well in terms of reducing the number of companies or switching stocks.

Keep Calm, Every Cloud Has A Silver Lining!

By understanding some of the factors that have been described above and what steps are appropriate to mitigate them, let's be optimistic about facing future economic challenges!

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