Recession is Coming

 

In my opinion, a recession is coming.  We have all the ingredients in North America:

• High inflation for both assets (houses, cars) and living expenses (gas, groceries)
• Supply chain issues
• War in Ukraine
• Central bank interest rate hikes coming

What does this mean for us?  It depends on your stage in life.  The usual results of a recession are stock market declines, house price declines, and more unemployment, 

If you are a young worker, best to make sure your job is secure.  Last in, first out usually applies when a recession hits.  Companies that are struggling are also at risk.

If you are a middle aged person, the same provisos on your job apply.  On top of that, you probably have a family and a house.  I recommend building up some savings, and avoiding any unnecessary large purchases like a boat or second home.

Retirees should also be careful with large purchases and be prepared to tighten your belt a little.  If you live on a juicy pension (rare nowadays), there may be little effect on you.