What to trade during the global recession?

It is hard time now for everyone who wants to trade equities now. The capital market is predicted to be stagnant for at least one or two years. Probably you will not see many opportunities on equities market soon.

So what should you do if you want to trade for living. The answer is: foreign exchange. During the crisis or recession FX markets offer great and aboundant opportunities.
Basic strategy is to buy currencies of the countries which would suffer most severly and to invest into currencies of the countries that are more immune to global slowdown.

The most obvious example of this strategy is taking EURGBP long. Great Britan is the country is suffering a lot because of the credit crunch. Too high real estate prices and rising inflation in GB compared to relatively stable economic environment in EU suggest that taking EURGBP is no-brainer medium term trade for now.

Other potentially interesting trades are long EURJPY or short EURPLN