How to Build a Sound Investment Portfolio in a Recession Year
Many market watchers have been yelling over recession storm clouds that are seemingly closing in. Undoubtedly, the last thing anybody wants is a rapid tumble as consumer sentiment continues to fade at the hands of the Federal Reserve's rapid-fire interest rate hikes. Undoubtedly, the Fed has few tools to put inflation away without doing harm to the consumer or employment. At this juncture, it seems like a questionable time to get started investing with your first $10,000, but it may not be a bad idea.
In an 11-month-old bear market, it seems like the only thing that stocks can do is go down. A sharp turn from what was expected of them in the meme-stock days of 2021, when many market newcomers thought stocks could only rise.
While many new investors may feel better investing after the bear market or recession ends, it's worth noting that there's a lot more in the way of long-term gain to be had by braving bear markets. Indeed, buying in the middle of a bear market entails pain. However, in the world of investing, a willingness to feel a bit of near-term pain may be vital in improving your shots at a solid risk-adjusted longer-term gain.
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