This video discusses how to navigate and even profit from economic recessions. The speaker, Vivian, provides strategies for recession-proofing finances, including investment advice, savings strategies, and debt management techniques. She also explores which industries tend to thrive during economic downturns and which are more at risk.
The video mentions the following index funds:
The equation is:
For example, if you are 42, you round to 40, subtract 10, leaving 30%. Therefore, 30% of your portfolio should be in bonds, and 70% in equities.
The stated goals of Trump's tariffs, according to the video, were:
The speaker's concerns are that the tariffs make goods more expensive for US consumers (as they pay the tariffs, not foreign countries), and that the on-and-off nature of the tariffs disrupts the supply chain, leading to potential overproduction and waste, or shortages and higher prices. The speaker uses the example of empty grocery store shelves during the COVID-19 pandemic to illustrate this point.
The speaker advises to carefully consider the percentage of your portfolio held in company stock options. She suggests asking yourself two questions:
If the answer to either question is yes, the speaker suggests considering "derisking" – selling some of those shares and diversifying those funds into other investments.
