Yes, definitely.
How do I know?
Because there is ALWAYS a recession coming.
It’s just part of the natural boom-bust economic cycle.
(It seems odd that people are talking about the bust (a recession) right now while we’re booming TOO MUCH (which causes inflation).
But if they’re getting inside your head, let’s set your mind at ease.
First off, they never last too long – 10 months is the average. (2008 was the exception not the rule.)
Secondly, if you’re invested correctly they should NOT affect your portfolio in the long-term OR the short-term.
(That means the money you need in the next 10 years is NOT invested in the market which allows you to ride it out unscathed.)
Lastly, the worst case scenario for most people is losing their job in a round of layoffs.
That’s where a 6 month emergency fund comes in. If you get really nervous, make it 12 months.
And for a back up to your back up you can take out a HELOC (but not borrow against it) for extra liquidity.
In my opinion it’s silly to be talking about a recession right now, but some talking heads are.
But it’s nothing to lose sleep over as long as you play it right (which all Financial Zen Members already are).
