If a Recession Is Coming, Here's How I'm Preparing My Portfolio
Recessions can be scary, but how you handle them can make all the difference. Here are my three big ideas.
Overview
Most of the current U.S. economic signals are still good. Overall unemployment is low, GDP growth is positive, and corporate earnings growth has been strong.
But there are also warning signs. The inflation rate is currently at 3.5%. The ongoing Iran war continues to put pressure on oil prices. The Fed is likely going to hike interest rates at least once before the end of the year.
Details
While a recession doesn't look imminent, it's not something that can be dismissed outright. High inflation and higher interest rates are headwinds to economic growth and can push the economy toward recession if they persist long enough.
Source
Originally published at www.fool.com.
Related Articles
- If You'd Invested $10,000 in Microsoft the Day Satya Nadella Became CEO, Here's What You'd Have Now.
- Nvidia's Shareholder Meeting Is Aug. 26. Here's What Investors Should Be Looking Out For.
- Jeff Bezos Stepped Down as Amazon CEO 5 Years Ago, and the Stock Has Lagged the S&P 500 Since. Could Amazon's 15.3% Gain on July 31 Mark a Turning Point?