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How To Recession-Proof Your Portfolio

How To Recession-Proof Your Portfolio

Posted On February 20, 2019 3:18 pm
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The latest economic reports are showing the economy deteriorating at faster than expected rate. Here’s how investors can prepare their portfolios for a potential recession.

In December the S&P 500 crashed into its worst correction in 10 years, largely due to fears that a recession was coming in 2019. The Dow and Nasdaq didn’t hold up any better, though all three indexes have rallied hard and strong so far in 2019.

However, the recession risks so many were worried about in December are starting to show up in the data and risks of an economic downturn starting in 2020 are now rising. Let’s take a look at why now is probably a good time to start getting defensive, including three ways you can “recession-proof” your portfolio to protect your hard earned wealth from a possible bear market.

Recession Risks Are Rising

While pinpointing when recessions will start is impossible there are time tested methods we can use to judge the current health and trend of the US economy, which ultimately drives corporate profits and thus share prices.

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Photo: “Vintage Bank Vault” by Brook-Ward is licensed under CC BY-NC

About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams, and enrich their lives. With 22 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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