2 Investing Moves I'm Making Right Now to Protect My Portfolio Against a Recession
While a recession doesn't appear to be imminent, things can change quickly.
Overview
Economic activity is fairly robust right now, in part due to the build-out of artificial intelligence (AI). So much so that the Federal Reserve felt confident enough to recently hike interest rates to rein in elevated inflation without being too restrictive on the economy.
However, since the Fed initially began hiking interest rates in 2022, investors have been bracing for a recession. After all, the economy experienced the longest inverted yield curve -- in which shorter-dated bonds yielded more than longer-dated ones -- in history. An inverted yield curve has long been a precursor of a recession. Furthermore, the market has been pumping higher since 2023, and affordability issues are rampant in the U.S.
Details
While there are no imminent signs of a recession, things can change quickly. Here are two investing moves I'm making right now to protect my portfolio and prepare for a potential recession.
Source
Originally published at www.fool.com.