A recent Forbes article predicting a major recession:
“U.S. stock prices will fall, perhaps below the 2002 lows, in the midst of a major recession. A major decline in housing prices and activity will almost surely precipitate a full-blown U.S. recession.”
Chicken Smith View:
So by now, you probably know where I stand on investments in the stock market prior to a recession, however, the prudent mind will think, well, if I’m diversified, then I’m probably ok, right? Well under normal circumstances, that would be correct, however, this is not going to be a normal “cyclcal downturn” this will span several years. Unless you’re talking 401Ks then, it’s probably best to invest in hard assets or as a friend recently suggested, making additional payments on your existing fixed rate mortgage. The reason being that the market is going to crash, and in that sort of volatility, anything can happen, yes, even a potential loss of a sizable part of, or your entire investment amount (ie, via reverse splits, bankruptcy, etc.). At least if you have a tangible asset, it’ll still be around after the dust settles.