During the economic recession cycle, all financial investment difficulties are currently shaking the trading community. If traders do not know how to choose appropriate investments, they can easily fall into situations of loss and loss. So let’s Learn Forex Trading and learn how to protect and increase assets in the article below to become a smart investor during a recession during the economic cycle.
Learn about what is the economic recession cycle.
First of all, we will learn what the concept of economic cycle recession is. In particular, recession is a situation in which an economy is declining or passive for a long period. It can include many different factors such as a decline in production, increase in unemployment rate, decrease in income… This can be caused by one cause:
- Influence from military conflicts and terrorism.
- Financial crisis due to bad debt or problems related to the financial market.
- The collapse of the real estate market, decline in demand…
Learn about what is the economic recession cycle.
See more: What is inflation that has a strong impact on Forex?
5 signs that the economic cycle is in recession
To evaluate and recognize the ongoing economic recession, you can rely on the following 5 signs:
- The decline in bond interest rates is intended to encourage loans to expand business.
- Apply tightening credit policies to limit risks and enhance liquidity.
- Businesses limit investment and expand production due to “fear” in business.
- The economic recession led to an increase in bad debts from people.
- The labor market has strong fluctuations with low wages and high unemployment rates.
The current global economic recession cycle situation
In 2022, the global economy will be affected by the Covid-19 pandemic. That reduces production and trade investment… causing a severe recession. By 2023, the problems of the Covid-19 epidemic have been alleviated but its consequences are still lingering. In addition, conflicts and wars around the world have partly reduced demand and made the recession increasingly severe.
Currently, the world economy is facing many crisis problems such as inflation, slow growth, and public debt… At this time, explain the Federal Reserve system has introduced many policies to overcome these situations. above. For example: Cut interest rates, financial support for banks… Besides, the UK’s economy is also seriously affected. Currently, our government is actively offering solutions to restore the economy to normal.
What impact does the economic recession cycle have on human life?

Living in an economic downturn can hurt people’s lives. Some of the most obvious impacts are:
- The high possibility of unemployment and job loss causes people to live in difficulty.
- Economic recession directly affects people’s income. At the same time, it reduces the ability to consume in life.
- Falling income makes debt repayment and financial maintenance unstable. This puts extremely stressful pressure on people’s daily lives.
- Economic recession negatively affects people’s psychological and spiritual problems.
What are the things to do during the recession phase of the economic cycle?
So what do we need to do to overcome and cope with the difficult situation during the economic recession? The following are the 3 most effective measures recommended for people:

- Increase your income by finding a part-time job or working part-time. This measure can help you increase your income and overcome difficult times.
- Become a smart shopper by buying truly necessary items. At the same time, take advantage of discounts and promotions to save some costs.
- Develop a personal financial plan to apply and allocate finances effectively during a recession.
See more: How to register ICMarkets broker account
What should you invest in financially during the recession economic cycle?
When facing a recession, smart investing is an important solution to help you get through this difficult period. One of the best options to protect personal assets is financial investment. So what should you invest in during the economic recession cycle? Please refer to the two types of assets below to best protect yourself financially.
Financial investment in life insurance portfolio

In a rapidly fluctuating economic situation, it comes with many financial risks. An incident can affect health and negatively impact family finances. Therefore, life insurance is the most optimal method today. Because it will protect participants financially when they encounter unforeseen risks. At the same time, it helps you accumulate assets through products such as investment-linked insurance… With life insurance, you can automatically accumulate finances and have the opportunity to participate in financial investments without paying. the transaction needs to be carried out. This can help you diversify your investment portfolio and achieve optimal returns over the long term.
Accumulate cash to overcome the economic recession cycle
To weather the economic downturn, you should accumulate cash during the crisis. With maturity benefits and investment dividends according to the provisions of forward contracts, it will help you collect a sum of money to carry out the economic recession cycle for plans. For example: buying a house, traveling, buying a car, getting married, raising children…
summary
So above Learn Forex Trading told you economic recession cycle What is that. At the same time, offer optimal solutions to help you protect your finances in the best way. However, remember that financial investments are not certain. Therefore, you need to build a strategy and prepare carefully to seize opportunities and increase your assets.
FAQs:
How long can a recession last?
Economic downturns can last from several months to several years. It also depends on many factors and the basic economic policies of each country.
What is the cause of economic recession?
Economic recession can occur due to several problems such as reduced production, global economic recession, and slow growth…
How will financial markets be affected by an economic downturn?
During an economic recession, financial markets are significantly affected. For example: asset values decrease, investors have difficulty recovering profits, and financial risk levels increase…