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How to React When a Recession Is Approaching When the market is taking a dip, here is how you can recover.

By Phil Town

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Phil Town asks the question, "Is a recession coming?" A few recent signs, such as trade wars and tariff conflicts, are indicators a major recession could be on the horizon. If and when the markets do take a dip, here are some ways to protect yourself.

  1. Build up your emergency fund. Put aside a 6-month rainy-day fund.
  2. Don't sell your stocks just because your investments are at a loss. If you believe in your stocks, don't give up on them so easily.
  3. Stay rational and don't panic. Try to make the best decision from a logical place.
  4. Load up on some awesome companies. Now is your chance to create a new watchlist of terrific companies that you think will enrich your current collection of stocks.
  5. Look for companies that have bounced back. If businesses were able to recover after the 2008 recession, they ought to be resilient enough for the current climate, too.

Click the video to hear more.

Related: Should You Be Worried About a Market Crash in 2020?

Entrepreneur Network is a premium video network providing entertainment, ewitducation and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

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Phil Town is an Investment Advisor, Hedge Fund Manager, 2x New York Times Best-Selling Author of Rule #1 & Payback Time, and Ex-Grand Canyon River Rafting Guide. Rule #1 Investing is Warren Buffett style investing, teaching you how to buy businesses on sale, with little risk and 15 percent returns. In fact, Rule #1 investing is practically immune to the ups and downs of the stock market.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

More from Phil Town

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Nervous About Investing? Think About Your Money This Way.

How to React When a Recession Is Approaching

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