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BUSINESS Saturday 17 auguSt 2019
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Worried about a recession? Protect yourself but don't panic

By SARAH SKIDMORE SELL While it may be difficult,
AP Personal Finance Writer fight the urge to readjust
If the threat of a recession your portfolio solely based
gives you pause when it on market conditions. Peo-
comes to your personal fi- ple who sold during the
nances, remember now is a last recession, for example,
time to prepare, not panic. likely suffered a loss and
Worries about the econ- then either missed out on
omy increased this week major stock market gains in
when a fairly reliable reces- subsequent years or had to
sion warning emerged from pay the price to jump back
the bond market. But with- in.
out a crystal ball, it remains If you originally designed
unclear when a recession your portfolio to match
might hit. Still, financial ex- your long-term investment
perts say people should goals and risk tolerance,
consider taking certain stay true to it, Keady said.
steps that are beneficial in If you don't think you can
any economy but would be objective, ask a profes-
aid households greatly in a sional for help.
downturn. Try not to get too tied up
DON'T PANIC in the ups and downs of
The longstanding advice the stock market too. Even
remains — do not panic In this Aug. 7, 2019, photo shoppers ride an escalator inside the Glendale Galleria in Glendale, those without money in the
and stay the course on Calif. market — about half of all
your financial plan. Associated Press U.S. households — might be
It is sage advice, said Dan tempted to see the mar-
Keady, chief financial plan- — panic or excitement." heavily weighted in one gains in technology sec- ket's move as a sign of the
ning strategist at TIAA, but If you simply cannot sit still, segment or another, par- tor. Whatever the portion times even though it can
it also goes against the use this pressure as an impe- ticularly after a long stock of your portfolio is in stocks, have little impact on their
grain for many people. "It's tus to check your plan. Are market run-up like the one remember that it can lose direct financial wealth.
hard just to do nothing," he your goals the same? Are in recent years. 10% or 20% of its value reg- And remember a recession
said. "The best investment your investments allocated Say, for example, you start- ularly as recessions come is a natural part of a mar-
strategy is a long-term one. where you want them? It ed with 60% of your nest and go. That's the price ket cycle, said Lauren An-
If you buy and sell your in- makes sense to periodically egg in stocks and 40% in investors have paid histori- astasio, a certified financial
vestments frequently, you'll rebalance your portfolio bonds. The stock portion cally for the stronger long- planner at SoFi.
more likely than not buy to ensure your investments could have easily jumped term returns of stocks versus "The advice is don't panic,"
and sell based on emotion have not become too to 70% thanks to strong bonds. Anastasio said. q

U.S. stocks end turbulent

week with broad gains

By STAN CHOE and ALEX the U.S., the result was a hasn't happened since the
VEIGA week where the Dow Jones end of 2018, the last time
AP Business Writers Industrial Average had four investors were getting wor-
You're not the only one days where it rose or fell ried about a possible reces-
confused about where the by more than 300 points sion. At that time, they were
economy is headed. Just — with an 800-point drop concerned about rising in-
look at the stock market, thrown into the mix. terest rates, along with the
where perplexed investors On Friday, the S&P 500 rose trade war. Traders John Romolo, left, and George Ettinger work on the floor
have been sending stocks 1.4%. The Dow climbed 1.2% Don't expect the volatility of the New York Stock Exchange, Friday, Aug. 16, 2019.
on a wild ride in August. and the Nasdaq picked up to go away anytime soon, Associated Press
And there could be plenty 1.7%. But each index still fin- analysts say. No one knows
more where that came ished with a third-straight when Trump's trade war will ment Management. "Sep- monthly performance in
from. Two notoriously vola- weekly decline. find a resolution, nor wheth- tember and October tend that stretch, a nearly 17%
tile months for stocks lie just Stocks, bonds and other er all the uncertainty it's to be the most volatile of drop in 2008.
ahead. investments heaved up created will push enough the year for markets. We've But Roland and other pro-
Stocks around the world and down throughout the businesses and shoppers been talking to investors fessional investors also cau-
jumped Friday to cap an- week, with worries hitting to hold off on spending for that reason to look for tion that this kind of turmoil
other tumultuous week. a crescendo on Wednes- and cause a recession. areas to prune risk within a is actually normal for the
Investors have been franti- day when a fairly reliable Some investors are digging portfolio." market, when looking at it
cally trying to rejigger their warning signal of recession in for trade tensions to last The S&P 500 has lost an av- from a very long-term point
predictions about whether flipped on in the U.S. Trea- through the 2020 election. erage of 1.1% in September of view. The U.S. stock mar-
President Donald Trump's sury market. "We're also heading into a over the last 20 years, mak- ket historically has had such
trade war and slowing Friday marked the seventh tough season for the mar- ing it the worst-performing bursts of tightly packed
economies around the time in the last 10 days that ket," said Emily Roland, co- month of the year. Octo- volatile days, interspersed
world will drag the United the S&P 500 swung by at chief investment strategist ber's track record is better, between longer periods of
States into a recession. In least 1%, something that at John Hancock Invest- but it includes the worst calm. q