What is the best hedge against recession?

Edward Tsang 2013.03.07

What is the best protection against inflation and recession? Health and knowledge are probably the safest investment. Both keep their value in booms and busts. Both help job security. Both benefit people around you.

Unstable world economy

All governments favour quantitative easing, which means creating money out of the nothing. This is an easy way to run a country. To avoid holding cash, investors go for various assets. The world has yet to recover from the 2007/8 financial crisis. The Euro crisis is not yet over. World economy is pretty unstable. What is the best protection against recession?

Investing in health

Money can't buy health directly, but it can help to improve health. Manufacturers often put a premium on healthy food. Money can buy medicine. When one can afford it, quitting a job that is stressful or dangerous could be the best investment. (Sadly, millions of factory workers work in stressful and sometimes dangerous environments in developing countries.)

Invest in knowledge

Knowledge can be acquired through self studying. It can also be acquired through good education. (Of course, some education only produces qualifications, not necessarily knowledge.)

Knowledge grows

Knowledge grows regardless of inflate or deflation. The more knowledge one has, the better one can acquire new knowledge.

Knowledge generates opportunities in economic booms

Knowledge protects jobs during recession

Education is the best hedge against recession

Knowledge are the best inheritance

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