The economy can be hard on your portfolio. This has happened before and it could happen again. Now that we’re officially in a recession, what better time to pump up your resources and shore up your portfolio than to make it recession-proof now or at least weather the tough economic times? Here are some anti-recession tips you might want to consider:
Aim for quality.
If there’s one thing that markets abhor, it’s uncertainty. This is especially prevalent in the way investors behave when faced with companies that produce predictable figures. This is also the reason why investors are loathed to take chances on companies that don’t perform as expected. These companies are usually the small ones, ones that need investors’ faith the most.
To start shoring up your portfolio, try to avoid companies that will rely heavily on you, the investor. It will be easier for you (and safer for your investment) to rely on companies that more or less show predictable growth because this points to better earning quality. Opt for these companies instead these are usually large firms, big players in an industry that have proven staying power...