'Protect yourself': Here's a survival guide for possible Trump recession

15 March

Donald Trump has unclaimed property and abandoned money in at least 16 states

President Donald Trump's trade war with Canada, Mexico, the European Union (EU) and other U.S. allies is worrying investors. And the Dow Jones Industrial Average has been plummeting and aggravating fears of a possible recession.

In an article published by Newsweek on March 15, journalist Hugh Cameron offers a survival guide for a possible recession.

Economists interviewed by Newsweek said a recession is a very real possibility.

Diane Swonk, chief economist for KPMG, told Newsweek, "The risks of recession have risen quite significantly. We are not there yet and could see a course correction, but are moving closer to the edge."

Economist Gary Hufbauer told Newsweek, "The on-again-off-again tariff story is tremendously disruptive to business. It completely erodes any certainty about the level of tariffs six months or a year from now. In turn, business firms put any expansion plans on the shelf. Together with the fall in consumer confidence, that sets up the economy for a recession."

Rosenberg Research President David Rosenberg told Newsweek, "It is next to impossible for the private sector to plan ahead when there are so many policy flip-flops. The level of economic and political uncertainty is unprecedented."

But according to Cameron, Americans can take steps to soften the blow if a recession occurs.

Personal finance expert George Kamel told Newsweek, "Recession or not, the best way to protect yourself financially is to live on less than you make, get out of debt (and stay out), and save three to six months of expenses for emergencies. Economic downturns are unpredictable, but financial peace comes from having a solid plan — not reacting to headlines."

According to Rosenberg, Americans should "immediately be cashing in on their winnings from the stock market these past few years and shift to areas that prove to be reliable refuges in troubled times." And Rosenberg cited "high-quality bonds" as a good source of protection.

According to Rosenberg, "Canada, with its super-cheap currency and near-record cheap (price-to-earnings) multiples relative to the S&P 500, should probably also be on the radar screen for American investors."

Read Hugh Cameron's full article for Newsweek at this link.

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