How to Prepare for the Next Recession or Market Crash

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I’ve been investing for more than 40 years and have learned lots of lessons over the decades, many by making mistakes. One of the most important lessons I’ve learned is also one of the most simple.

As I wrote in an article called “The 10 Golden Rules of Becoming a Millionaire“:

“Rich people ring the register when the economy is booming, but that’s not when they created their wealth. You get richer by investing when nobody else will: when unemployment is high, the market is tanking, everybody’s freaking out, and there’s nothing but fear and misery on the horizon.

The cyclical nature of our economy all but ensures bad times will periodically occur, and human nature all but ensures that when bad times happen, most people will freeze like a deer in the headlights. But downturns are the time you’ve been saving for.

If you think the world is truly ending, buy canned food and a shotgun. If not, step up. As billionaire investor Warren Buffett famously advised, ‘Be fearful when others are greedy and greedy when others are fearful.'”

In other words, recessions and the stock market tumult that often accompanies them may be jarring in the short term, but in the long term, they can make you rich. That is, if you’re prepared.

That’s what this week’s “Money!” podcast is about. We’re going to give you an educated guess as to when you might see the next major economic downturn, but more important, we’re going to give you the tools you’ll need not just to survive, but to thrive in the aftermath.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Sit back, relax and listen to this week’s “Money!” podcast:

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Show notes

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