What can we expect if a recession hits? As our economy takes a deeper downturn every week it seems like the odds of a full on recession is increasing. We should not be worried about if a recession happens in my opinion because that’s just something we can’t control but rather how to protect our investments if a recession hits. If you need a bright side to look at just know in times of recession there are great shifts of wealth, so if you play your cards right this is an excellent opportunity for you.
Ok, so what should I do if I’m affected by a recession? It’s crucial to manage your spending from here on out and really buckle down on limiting your expenses. Even if you feel as if you are in a safe spot continue saving because you never know how bad it can get. You’ll also want to change your investment strategies to focus on more long-term stocks that increase in value over time. The key is to invest with a ten-year outlook whether you’re investing in real estate, larger companies in the S&P 500, or even gold and silver. Make sure your diversifying your investments as you do this and focus on ETFs to limit your chance of losing money. Lastly, leverage your tax advantages by using your deductions to reduce your overall tax liability. In these next 18 months, it will be crucial for you to follow these steps to protect your investments and remember if you are out at the shop and don’t have it already, you probably don’t need it.
No matter what happens, know the economy is cyclical and everything that goes down must come up, at least I hope!
Comments