GO
Loading...

Eight Tips for Investing in Hard Times

The economy occasionally heads south. When it does, you have to take a close look at your finances and review, regroup and perhaps recoup.

Real estate in many markets has lost its luster. Bonds are either mired in controversy or priced at levels where it's hard to imagine much of an upside. The yield on cash investments has trended lower with the Federal Reserve's steady easing of its targeted federal funds rate from 5.25 percent in 2007 to 2 percent in April 2008. As for stocks, well, stocks have been bouncing between the promise of a new tomorrow and the fear of facing tomorrow. What's an investor to do?

Despite past rate cuts and the federal stimulus checks that went out beginning in April, it appears that the U.S. economy is running scared of a recession.

Since we won't know we're in recession until the economists at the National Bureau of Economic Research, or NBER, tell us we're in a recession, it makes sense to think through how we're invested and changes we can make to improve our portfolios or finances now.

_____________________________________
Worried About Your Money? Check Out Advice From Bankrate.com:

_____________________________________

To that end, Bankrate has asked a group of investment professionals and investment journalists to weigh in on how an investor should prepare for or invest in hard times.

1. Pay down loan balances and earn a guaranteed return
Not all financial moves you make when you expect hard times relate to your portfolio. Taking some steps to manage your spending can help you position yourself to survive a financial setback such as getting laid off from your job.

William Suplee IV, CFA, CFP, president of Structured Asset Management in Paoli, Pa., suggests that, "In difficult economic times, often simple things can make large improvements to your personal financial situation.

Read Tip #2: Be Prepared...

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • The Glass Ceiling

    Full-time working women still only earn about 77% of what men do in the same fields. A lawsuit in Silicon Valley is bringing renewed focus to that statistic. Vanity Fair Contributing Editor Bethany McLean on the equality fight for women's pay and promotion.

  • Man takes off work clothes on beach

    With Ruth Porat leaving Wall Street for Silicon Valley, Turney Duff takes a look at other ex-Wall Street friends and where they are now.

  • A group of scientists believe they've cracked the reason behind a big mystery: Why are beards so popular?

U.S. Video