Disclaimer: * This may contain affiliate links* I’m not a licensed investment adviser. Also, I’m not a tax adviser and this is not tax advice nor investment advice. Please talk to a licensed investment adviser before making any financial decisions. Please talk to a licensed tax advisor before making any tax decisions.
Recessions are a normal part of the economy, what goes up must come down and vice-versa. Over the last few months, there has been an increasing amount of articles saying that the next recession is on its way. However, it is always on its way. The best time to prepare is before it happens. The reasons for the next one will most likely be different than the reasons for the 2008 recession. I have compiled a quick list of how to prepare yourself for the next one, and I will be doing these too.
Purchasing canned goods. Now, this may seem a bit odd but this type of food preservation lasts a long time and it might be able to help during those periods where fresh food is difficult to find. Other good things to buy are dried goods you know that you eat on a regular basis, however, they do not keep as well as canned goods.
Tangible Assets. These include gold and silver. The price of gold has ballooned due to several factors.
- The announcement of an inverted yield in bond prices
- Geopolitical uncertainties
- The Feds announcement of the decrease in interest rates
If the currencies are starting to devalue then people start rallying behind these assets. Silver, even less so, as the price has barely budged due to these announcements. However, it is up to you which you prefer, silver may have budged less but I am more inclined to purchase because more can be purchased.
Invest in inverse stocks. There are several inverse stocks that also track the market. These stocks look at the market inversely. For instance: SPXS. Its inception date is back in 2008, at the height of the recession the share price was $8000.00. Will that happen again? Maybe not. However, it is a way to safeguard a portion of your money. When tracking it daily, it does move against the market. When the market does well, it goes down but it goes up when the market is down. So, having a few shares of inverse stocks would not hurt.
Cash reserves. This goes without saying but having some cash set aside might help mitigate the pain in a recession. Assuming there is no hyperinflation. In that case, food will be your greatest asset. Having cash reserves also helps if you plan on buying into the market when it is cheaper. This can also float you in case of a job loss.
Payoff Credit Card Debt– Especially since the interest rates are outrageous. If you cannot pay it off fast enough perhaps do a balance transfer for some relief. If you’re looking to get started on that process, this link will direct you to the Chase web page to take a look and see if it is a good fit for you!
Does anyone else have any suggestions on how they are preparing for the next recession?
If you are interested in other recession posts that I have written then click here