5 Steps to Handling Investments in a Recession
As the COVID-19 pandemic so abruptly reminded us, the economy doesn't always grow, and the stock market doesn't always rise. Indeed, a falling stock market often goes hand in hand with a declining economy, as stocks are ultimately priced based on people's expectations for the future. When times are tough, their expectations get lowered, depressing share prices.
With that in mind, it takes a special mindset to effectively handle your investments during a recession. You have to keep focused on the fundamentals, be prepared for things to go wrong with the companies you own, and recognize the risks a recession can have on the rest of your financial situation. These five steps to handing investments in a recession can help you improve your chances of getting through the tough times intact. Doing that successfully positions you well to profit during any subsequent recovery.
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Source Fool.com
