Recession-Proofing Your Portfolio: A Step-By-Step Guide

Recession-Proofing Your Portfolio: A Step-by-Step Guide
Oct 7, 2019

With many analysts forecasting a slowdown—if not a full-blown recession—in the near future, it’s important to make sure you’re prepared before it happens. Find out how owning precious metals, like gold and silver, can help protect you from a potential economic downturn in this episode of USMR Market Insights with Patrick Brunson.

Recession-Proofing Your Portfolio: A Step-By-Step Guide – Video Transcription

Patrick Brunson:               00:00

So one of the biggest topics that have been discussed in the mainstream media over the last several weeks, is the possibility of a slow down in the economy or even a recession on the horizon. With that said, it has raised many questions as to how one should diversify their portfolio during trying times such as these. There were many stories of Americans that said they were blindsided by the last recession in 2008, but also many Americans were said to have lost most or all of their savings and their retirement. It's also been reported that several people lost their jobs and some even lost their homes, but the question we have to ask ourselves at this point is, can I survive another downturn as we saw in 2008? Could I make it through a downturn comfortably with where my money currently sits? Would I be able to stay retired after it's all said and done with? That's the biggest one.

Patrick Brunson:               00:56

The answer to all of these questions is actually much more simple than you might think. The reason being is because there are places that you could move your money during times of economic uncertainty that could actually minimize your downside losses, and in some cases actually yield a profit from a recession or an economic downturn. But the key is making those moves at the right times and not waiting till the last minute to make those adjustments. We never know when a recession is going to take place, but we can certainly see the signs of one coming when they start to pop up. It's when you see those signs is when you want to start taking action and making the moves that are necessary to protect your portfolio as well as your financial future. Keep in mind that it's much better to be a few months or even a year early than just one day too late.

Patrick Brunson:               01:43

Now you also want to keep in mind that recessions are not necessarily a bad thing should we allow them to happen organically. But the problem is that when we get too close to our recession, the government, as well as the fed, may try to step in and push off the recession by lowering interest rates or using other tools at their disposal to do so. The problem when we do this is we might end up creating a bubble that continues to grow and get bigger the more we continue to push it off. Eventually, it can lead to a crash. The key to recessions in most economists minds is that if you allow recessions to happen organically and naturally, it will allow asset prices to come back down to their natural levels so that investors or buyers can get back in at the lower cost, and then those assets can start to rise organically again.

Patrick Brunson:               02:33

We may already be far past that point and there could be something big at our doorstep. So with that said, what are the best safe-haven assets one can acquire to protect themselves, as well as their money, from what's to come is precious metals. Gold and silver and even platinum and palladium have always been great assets to diversify with during times of recession because these assets tend to rise when the dollar and other assets are dropping. It's a form of insurance on your portfolio or even your savings that you're not currently using. Typically during times of recession in the past, brokers would simply move our money over into things like treasury bonds, as a low return but very safe place for the money. However, the bond market has become so heavily saturated, especially with the inverted yield curve taking place. So now you have many experts and money managers choosing to move into precious metals instead.

Patrick Brunson:               03:27

We've already seen gold move up roughly 15% on the year as it stands, but you have to remember that when the price of metals are rising, it's not because the metals are more valuable, it's because the dollars we are using on a daily basis are dropping in value causing inflation, as well as the prices of goods and services,  to continue to rise, along with gold and silver and other metals. Because of what is taking place around the global economy right now, I urge you to pick up the phone and call the number on your screen or click on the link below to get U.S. Money Reserve's latest special report, U.S. Stock Market Crashes: Lessons from the Losses. This report provides many of the causes of previous market crashes. So please click on the link below or call the number on your screen right now to get your copy and please give us your thoughts and share this video. If you're watching us from YouTube, please subscribe to our channel so that you don't miss a single episode. I'm U.S. Money Reserve's, Patrick Brunson, and thank you for watching Market Insights.


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