Recession and investing

Hi Nelsi :)

Is it worth saving money? Always!

We should always keep enough money around in case of job loss or unexpected problems like that. At the very least, this helps us relax and not worry about having money to live on.

As for the market, the truth is nobody knows what’s going to happen in the next 3 weeks, 3 months, or 3 years. This is a really important thing to understand.

The exact same type of thinking occurred right in the middle of the covid crash in 2020. The market was going down, so people stopped investing because they thought it would get worse and worse. But that was exactly the time that market started recovering.

Markets tend to look forward into the future. So what tends to happen (historically at least) is that markets often fall before a recession and then during the recession they actually start recovering as they are looking forward to when things will eventually get better. The point is, it’s not as easy as saying «recession is coming, market will get worse». Maybe it will, maybe it won’t.

I actually wrote about this during the middle of the pandemic, and it’s really interesting to see how the same comments and thinking applies today. I’ve linked some content below related to this topic which might be helpful for you.

Short-Termism and Market Madness: https://strongmoneyaustralia.com/short-termis...
My Thoughts On The Corona Crash: https://strongmoneyaustralia.com/my-thoughts-...
Recessions, Fear & Market Timing (podcast): https://strongmoneyaustralia.com/podcast-rece...
How to Become Recession Proof: http

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