Feelings on pending recession?
 

Wondering what everyones feelings are on a possible recession and your investment strategies?

So far we are beating the market a little at loosing about 1% (compared to the market losing about 1.5%) over the past week of turbulence.

How are you doing, and are you making any preparations (and any you would like to share) to protect your retirement nest egg from a possible pending recession?

Invest in forestry, not stocks

Be diversified, have cash ready to get some real bargains--2008-2009 was a blessing for a lot of people--get to zero debt fast-

Election time. Twisted news. Insider trading. Lots of things to worry about. Cash is king.

There is way too much recession hysteria going on, fueled by an out of control media. A recession is defined as two consecutive quarters of negative GDP, and we are nowhere near that condition. First Quarter US GDP grew by 3.1 percent and Second Quarter GDP grew by 2.1 percent. While the trend is down, it's nowhere near recession levels and everyone should just calm down. The Oracle of Omaha just bought some more Amazon stock . . . .

It’s time for a recession as we have had ten years of growth. We will survive, but have not doubt, it’s coming soon. Too much pressure being put on the world market with trade wars.

Like many others, I believe the “recession” fears are politically driven and not based in financial reasoning. That said, I have a reserve of cash that I am looking to leverage when the fear forecasters drive the non-educated from the market. If history repeats, I am looking at making a quick 10 - 15% with that reserve account. Although it may sound mean, one must take advantage of the hysteria spin and the less financially knowledgeable in situations like this.

We spoke with our financial advisor yesterday, and he said its about a 50-50 chance of recession based on the economic factors in evidence right now, and it may be down the road a year or two not necessarily tomorrow.

Exactly, While ours says maybe 52/48 chance and not tomorrow but soon - year or so.

As pointed out, it is time, about 10 years from the last one and the rate inversion.

Cash is a good thing, and we are new to this, so the hard part is to keep repeating "Think long term"...

Historicaly
 

Going back many decades it has been the experience there is a recovery period and a recession after the recovery and the recession is 1/2 the length of the recovery. Two things. 1. It is reasonable to expect a recession since we had a long recovery period. 2. Hopefully there will not be attempts to try to delay the recession as it would just be causing the recession to be longer. :ho:

Recession forecasting "hysteria" is nothing more than a fabricated wedge to get the public's attention. Of course politically/media driven. And as history would attest has little to nothing to do with how we live our lives.

The accuracy of such prognostications is akin to measuring passing clouds and more like poll results (and we all know how accurate they are NOT).

A way to make one feel better? Just do not watch any of the network news including FOX.

I prefer to be able to select that news which is of interest to me vs the agenda driven national news readers (not reporters).

Keep at least two years of living expenses in cash or cash equivalents - money markets, CD ladders, short term bonds.. It will help you sleep better at night.

Went to cash when Dow was over 27,000. Not much interest earned, but profit taken is still there.

I have always believed that trying to time the stock market is a bad way to invest. Typically, most stock market timers cannot even match the S&P 500 Index performance. I have never used a financial advisor, but, if I did, I would ask them to tell me what they are doing with their own investments.

Let’s see, interest rates are low, people have jobs and businesses are still hiring, wages are rising and the current Administration is actually doing something to bring more jobs back from countries that have taken advantage of our lax trade laws. Just don’t feel a recession yet despite those that almost seem to wish one on our Country. Just look at all of the entry level jobs paying above minimum wage, these are still very good economic times.