It may be necessary to get ready for a recession. The Federal Reserve's steps to raise interest rates and growing inflation are the main contributors to this concern. The stock market became erratic due to these worries, the epidemic, and persistent supply chain problems.
However, there are things you can do right away to get ready in case a recession does come your way. The ten approaches investors may take to help prepare their portfolios for a future slowdown are listed below.
1. Set attainable, quantifiable, and explicit investing goals
For instance, you could want to retire in 20 years and maintain your present quality of living for your whole life.
When people don't have defined goals, they frequently approach the way to get there piecemeal and wind up with a disparate group of investments that don't meet their actual needs. Without a destination in mind, you will arrive somewhere else.