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.