This Asset Will Protect Your Portfolio from the Double Dip Recession
The chance of the current recession being a double dip one has many investors and risk rating agencies uneasy. A second recession might take place just before the current one finishes its recovery process. There are various factors contributing to this possibility. Among them, the new strains of the corona virus were recently found, as well as the oversupply of capital in the financial markets. The com bination of an artificially high level of liquidity in the market and the possibility of new causes of panic among investors and traders is a very dangerous one, especially for those who have their stakes in the stock markets.
Further adding to these causes of uncertainty are the recent events in the United States regarding the latest elections and the transition of power. Just a few days ago the US capitol was overtaken by a mob of protestors who did not want to acknowledge the victory of Joe Biden in the elections. This was labelled as a coup attempt by various media outlets, something which is unprecedented in the history of the country, and which had a tangible impact in the stock markets.
So far, however, it is in Europe where the most visible signs of a double dip recession have appeared. Since the apparent recovery that the stock markets saw by the end of 2020, the UK’s GDP has decreased by 4%, and could be further decreased as the lockdown measures get stricter. Although the UK is the country on which these effects have been most prevalent, they’ve been widespread across Europe, and could also spread to the US if the new strains of the virus reach the country.
Once there, the double dip recession could be a global issue. While the vaccine represents a ray of hope, the new strains are making it harder to tell whether the vaccines currently in the market will be the end of the corona virus. Furthermore, the distribution of the vaccine is a long, arduous and costly process, and it’ll be at least a few months or even a couple years before we achieve generalized immunity.
Luckily, there is an asset that can help you as an investor to diversify your portfolio, within a private secondary market that is absent from the effects and uncertainties of the traditional stock markets. Konzortia Capital’s new asset class has many unique advantages over any traditional asset classes. Essentially, it is a private equity that is only accessible for select accredited investors. The twist is the fact that it is made to be traded using the advantages of distributed ledger technologies, allowing it to be listed in a secondary market within a special trading platform called Capitalista.
The distributed ledger allows the transactions to take place securely, while the verification and contracting processes are fully automatized. This allows the equity to be highly liquid without requiring the burdensome processes of an IPO, giving investors a clear exit strategy. Konzortia Capital is formed by three unicorn FinTech companies that are aimed at revolutionizing the financial markets. These are the online global bank SBank, the private equity platform InvestHub and the brokerage and wealth management platform Capitalista. This makes the asset unique, not just insofar as it is made to be traded in a secondary market, but because it has very high potential for exponential growth, along with high dividend yields.