GQ recently published an article saying there are signs of a looming recession and it is time to pay attention. We agree! I’m sure you are wondering, does Leading Edge know when the next recession will come? No, we don’t. BUT, will a recession come? Absolutely yes.
So, what should you do to prepare? First, take steps to lower your debt, make sure your cash flow is strong and don’t live beyond your means. Easy enough. But what should you do about your investment portfolio? Using modern portfolio theory, Kevin explains how mixing asset classes can lower volatility – specifically bonds. Bonds aren’t sexy – we know! But there is a strong potential to lower volatility by using very high-quality bonds in a portfolio. High-quality bonds help investors sleep better during times of market dislocation and/or recessions. Watch to see Kevin explain the evidence behind this investment theory.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 09/06/2019 and are subject to change at any time due to the changes in market or economic conditions.