Are you an investor looking to navigate a non-transitoryrecession? It can be incredibly difficult, with investors tending to adopt
either long or short-investment strategies in response. Whether you lean
towards long-term investing for security and lower risk, or short-term
strategies for quick gains, there are some important tips and tricks by William
Schantz that everyone should know before taking the plunge in a market
downturn. Read on to learn more about how to face non-transitory recessions as
an investor.

How To Face Non-Transitory Recession As An Investor?

Bill Schantz Answers

1. Rebalance Your Portfolio: A recession is an ideal time toreassess your portfolio and make sure it's well-balanced with a variety of
asset classes. According to William Schantz, rebalancing can help minimize losses
resulting from market volatility by preventing any one asset class from
becoming overvalued or undervalued. Consider reallocating funds in stocks,
bonds, cash, and/or other investments depending on your risk tolerance and
financial goals.

2. Prioritize Liquidity: During times of economicuncertainty, it’s important to prioritize liquidity. This means having enough
liquid assets (cash or its equivalent) on hand so that you don’t need to sell
investments at a loss in order to meet short-term obligations. Make sure you
have an adequate emergency fund to cover necessary expenses for a 3-6 month
period.

3. Invest Strategically: Recessionary periods often bringinvestment opportunities as prices of certain assets become undervalued.
Consider investing in stocks that are proven to perform well during recessions,
such as consumer staples and healthcare companies. Other investments may
include bonds and real estate if the market conditions are favorable to protect
against potential losses from stocks.

4. Utilize Tax Strategies: Take advantage of tax strategieslike deferring income or harvesting capital losses to help minimize tax
liabilities during a recession. You can also utilize retirement accounts such
as 401k and IRAs to benefit from pre-tax contributions and/or tax deductions
when applicable.

5. Practice Patience and Discipline: Don't let fear dictateyour investments; instead, practice patience and discipline as you make
decisions during a recession. Be aware of the potential risks involved in any
investment before committing to it, and don't succumb to emotional investing or
knee-jerk reactions to market fluctuations. Take the time to research each
opportunity thoroughly and understand the implications of your decisions before
taking action.

6. Seek Professional Advice: If you’re still unsure of howto proceed, it might be beneficial to seek advice from a financial advisor. An
experienced professional can help assess your individual situation, says William
Schantz, and provide sound investment strategies tailored to your specific
goals and risk tolerance level. Having someone in your corner during times of
uncertainty can be invaluable, so make sure to consult a trusted source for
advice.

William Schantz’s Concluding Thoughts

By following these tips by William Schantz, investors can help strengthen their portfolios against
non-transitory recessions and protect their financial future. Rebalancing for
asset allocation, prioritizing liquidity, investing strategically, utilizing tax
strategies, and exercising patience and discipline are key steps for weathering
any economic downturn with minimal losses. Ultimately, the most important thing
is to remain diligent and make informed decisions to help ensure financial
success during tough times.