How to look for buying opportunities if there's a recession coming
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The Federal Reserve made a strong commitment to 0.50% moves in June and July, according to minutes from the central bank's May meeting released on May 25th afternoon.
Fed Chairman Jerome Powell dallied as labor markets overheated and told that the money he was printing didn't matter.
Source: Barron's
Too much money is chasing too few goods—households and nonprofits have about $3 trillion more in their checking accounts than before the pandemic.
The Russian invasion of Ukraine and the COVID-related shutdowns in China are leading to disruptions in the global supply chain that have, in part, boosted prices. Those pressures could ease at some point, but the timing and magnitude would be uncertain.
The word recession is on the tip of everyone's tongue.
[What to Do When a Bear Market Whacks Your Investment Portfolio]
When the markets dive, your returns could drop with them. Here is a three-step plan to beat the bear.
Don't Panic
Moving away from riskier stocks can pay off long after the bear market in history. Just don't succumb to the temptations of panic selling.
Plan Your Asset Allocation
Your money should be diversified between stocks and bonds to help you ride out market storms, though the allocations will vary with age and risk tolerance factors.
People's investment decisions are susceptible to emotions, so they might pursue rises, kill falls, buy high, and sell low. Butautomatic investment plan (AIP)is a disciplined investment implemented punctually to avoid changing long-term investment strategy due to temporary market fluctuations.
Unlike one-time investments, an AIP is a process of multiple investments with average costs. Due to that the amount of monthly investment is fixed. You will buy fewer units when a fund's price is high and more units when the price is low, which achieves the desired effect of averaging costs.
Investing isn't about trying to create an AIP and riding it to the moon. The next step is to figure out how to make an AIP that works for you.
PaAg1378 : Wat happens to AIP when there are stock splits?
48685 : thanks for sharing
102735442 : What do you guys invest in during a recession
be wealthy 102735442 : cash, bond funds and work /(ㄒoㄒ)/~~