7 Things Warren Buffett Says To Do Before a Recession Hits
1. Build liquidity: Have enough cash on hand to cover your expenses for several months in case you lose your job or income is reduced.
2. Avoid putting all your money in no-growth assets: Don't tie up all of your money in assets that don't appreciate in value, such as bonds or CDs, especially if interest rates are low.
3. Invest in productive assets: Invest in assets that generate income, such as stocks in well-run companies or real estate properties.
4. Pay down debt: Reduce your monthly debt payments so that you have more financial flexibility in case of a recession.
5. Diversify your investments: Don't put all of your eggs in one basket. Spread your money across different asset classes and industries.
6. Have a long-term investment horizon: Don't panic and sell your investments if the stock market crashes. Stay focused on your long-term investment goals.
7. Be fearful when others are greedy, and greedy when others are fearful: Buy stocks when they are cheap and sell them when they are expensive.