I was in middle school when the last recession hit.

It has been a long time since investors have had to deal with predictions of pain and prepare their portfolios accordingly.

I was too focused on my braces and where I was going to sit in the cafeteria to pay attention to the economy.

Today, the Federal Reserve is hiking interest rates at the fastest pace since the 1980s in a bid to curb raging inflation. It wants to cool the economy so that it doesn't cause a slowdown. It is looking more and more likely that a downturn could be an unavoidable side effect.

The housing market is cooling and companies are laying off workers. Walmart earnings this week showed that consumers are cutting back on purchases.

This will be the first real downturn for people who entered the workforce after the Great Recession.

Veteran investors were asked to tell us their best and worst recession moves.

Mike Silane at 21 West Wealth Management said he caught a falling knife when he bought equities during the dot-com downturn. Chris had a false sense of security during the financial crisis. What's the next thing? It is best to avoid taking risks when there is no certainty.

Tara Unverzagt at South Bay Financial Partners is an example of a company that might not be a good fit for you. She admitted that her biggest mistake was not doing her homework.

The pros told them to stick with what they know. The biggest mistake Deborah Ellis made after the dot-com bubble burst was buying index funds to invest in. She says to always understand what you are buying and why.

I will be buying more bonds and less pizza in the mall.

If you have questions about your finances, send them tobbgwealth@bloomberg.net

Don’t Miss


A social media trend of "living it up" is making it harder for Gen Z to save money, according to an opinion piece by an analyst.

It’s easy to fixate on the binary of frugality vs. living it up. But it’s far more rewarding to discern what you actually find important. We are constantly bombarded with messaging about what we should value and strive for, but much of it is marketing and social pressure. Focusing on your values will illuminate how you should be spending, saving and investing your money. Say no to what you don’t want, and budget in what’s important.

Read her full article here. 

Financial FAQ

If I lose my job during a recession, what should I do?

Increasing your emergency fund allocation to at least 12 months of expenses is something I recommend. It's important to know the location of all your paperwork related to the 401(k) plan. If you have life or disability insurance as an employee benefit, you might want to look for a new policy. If you're still employed, it might be easier to reach out to your network before the ax falls. If family health coverage had to move to your spouse's plan in the middle of the year, it could be worth looking into.

There is a founder of a New York-based investment firm.

If you have questions about your finances, send them tobbgwealth@bloomberg.net.

Coming up

  • Amazon and Apple report earnings today.
  • The US gross domestic product report for the second quarter comes out today. 
  • Exxon and Chevron release earnings tomorrow.