5 Tips for Weathering Another Recession

ABC News spoke with Joe Magyer, senior analyst at The Motley Fool. Here are his five tips for weathering another recession.

1. Don’t Freak Out: The United States has had eight recessions since 1960, but it hasn’t stopped the S&P 500 from increasing 2,000 percent. Stay calm and focused on the long-term. The best time to put money into the market is when everyone else is selling.

2. Don’t Check Your Portfolio Every Day: Constantly checking stock quotes will only stress you out. Relax and focus on your long-term returns, not how your stocks are doing on a daily basis. Think about what you’re doing over the next five years instead of the next five minutes.

3. Don’t Buy Gold: If you’re thinking about buying gold, you’re the last one to the party. Everyone’s already bought into gold and I think there is a lot of downside risk in buying it right now.

4. Stay Away From Bonds: It might be tempting to seek safety in bonds right now, but bond prices are very high while stock prices are very low. Don’t get your heart broken by buying so-called “safe” bonds.

5. Buy Quality: Safe, first-rate businesses with high dividend yields like Procter & Gamble and Johnson & Johnson are selling at great prices right now.

ABC News’ Rachel Humphries contributed to this report. 

Join the Discussion
blog comments powered by Disqus
 
You Might Also Like...