3 Ways to Prepare Your Portfolio for a Recession

Investors have been on edge in recent months, wondering if the U.S. could be headed for another recession.

In case you haven't heard, there's a trade war with China. And the yield curve inverted in August, a recessionary sign that had people Googling the term "recession" like it was 2008. And there is the seemingly continual reminder that this economic expansion is the longest in U.S. history.

If all that makes you worry, here are three things you can do that could help, whether the next recession comes in a month, a year, or five years: Review your holdings and consider whether recession-resistant stocks need to be part of them; consider some key questions about how much cash you want in your portfolio; and make sure your all-important emergency fund is in good shape. This kind of preparation can help you avoid one of the biggest pitfalls investors face -- panic.

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Source Fool.com