What to Do If You’re Worried About a Recession

You may have heard rumblings that a recession could be imminent. Bull markets (when share prices are rising) historically last about five or so years, and we’ve been in one for more than 10 years now.

You may have heard rumblings that a recession could be imminent. Bull markets (when share prices are rising) historically last about five or so years, and we’ve been in one for more than 10 years now.

Keep in mind that economic fundamentals are still strong:

• Unemployment is low
• Interest rates are low
• Consumer debt is low
• Oil prices are low
• Corporate earnings are high

All of these factors bode well for the stock market and overall economy, but past experience has many worrying about when the next recession will hit and how to prepare financially.

Because the stock market typically fluctuates, if you’re young enough, you have time to ride out a recession.

If you’re closer to retirement age, it becomes more important to maintain a diversified portfolio. And remember: Even when you retire, you won’t need all of your money at once, so it could make sense to keep some in more aggressive investments for a bit longer.

When interest rates are low – as they are now – bonds may not be a great investment. As interest rates rise, bond values usually drop.

One investment option to consider is alternative investments. There are also investment opportunities that can give you exposure to the markets with some built-in safety nets to help manage some of that risk.

If you’re concerned about the possibility of a recession, use it as an opportunity to meet with your advisor, so we can analyze your portfolio to make sure it’s suitable for your situation.

And remember to work with a trusted wealth advisor. At Bell Investments, we are fiduciaries, so we look out for our clients’ best interests rather than push a specific product.

Tim Bush | Bell Investments SVP/Wealth Advisor

Main: 320-762-3200

Direct: 952-905-5011

tim.bush@lpl.com 

Alternative investments may not be suitable for all investors and should be considered as an investment for the risk capital portion of the investor's portfolio. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk, including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Bell Bank and Bell Investments are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name Bell Investments, and may also be employees of Bell Bank. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Bell Bank or Bell Investments. Securities and insurance offered through LPL or its affiliates are: