Weathering a Recession- Lessons Learned from 1929 and 2008
All I can say is I am amazed at the size and scale of the lockdown in the western world the coronavirus has brought. President Trump has declared a state of emergency and the WHO has declared Covid-19 to be a pandemic. The world stock markets and cryptocurrency markets have plummeted, and we are drowning in a sea of red. What do we do now? We practice lessons learned from past recessions.
The closure of schools, cruise ships, international flights, the NBA and NCAA, gatherings and conferences is going to ripple through the economy. World economies are connected, as are community economies. Economies depend on a flow of cash through the system, and when we restrict activity, that flow stops.
When schools closed in Arizona, workers had to take time off to find childcare. If this is an extended quarantine, thousands of workers will have to make a choice about their work and if they can continue their employment. This will ripple into all corners of the economy.
The supermarket shelves are bare here. The people are worried about quarantine and loss of work hours. Consumer debt is at record levels. We are ill prepared for this shock.
What should an investor, citizen, worker and family member do to ensure they make it through this? Remember 2008? Use the lessons you learned during that time to survive.
Focus on building and monitizing your skills. Are you a gardener, health care professional, handyman, carpenter or skilled tradesman? These are all skills that are necessary during a downturn. Bartering is the basis of an economy when a depression or recession hits.
Build your social network where you live.
Stay healthy. Exercise, eat well and rest.
Dollar-cost average your investment positions down. Focus on investing into strong and persistent businesses.
The birds are still chirping and the sun is still shining, even in the deepest of recessions. Keep your endurance up and your eyes to better days.
Originally published in my Publish0x account I own at:
Also published in my Steemit account I own at cryptoedify and my Weku account at wstanley225.
Picture from Pixabay.