THE S AND P ROSE SEVEN
PRESIDENT SEVEN POINTS.
HERE IS A RECESSION THAT MANY
WONDERING HOW DO WE
PREPARE FOR A DOWN TURNN.
THE ONLY HARD AND FAST
RULE IS DON'T PANIC.
TONY REPORTS.
Reporter: THE SUMMER OF 2019
AND MANY SEE A
DARK CLOUD ON THE HORIZON.
A RECESSION.
SINCE WORLD WAR II WE HAVE
HAD RECESSIONS EVERY
SEVEN YEARS ON AVERAGE, WE
HAVEN'T HAD ONE FOR TEN
YEARS SO WE ARE DUE FOR ONE AND
I THINK THERE IS
SOME SIGNS WE WILL HEAD INTO
ONE BUT YOU CAN'T KNOW
UNTIL ARE YOU IN IT.
Reporter: NOT ALL ARE
CREATED EQUAL.
THE 2001 DOWN TURN WAS SHORT
AND MILD.
THE GREAT RECESSION TEN YEARS
AGO LONGER AND MORE
DAMAGING.
IT WAS MADE WORSE BY THE
MORTGAGE CRISIS AND THE
BURSTING OF THE HOUSING BUBBLE.
WHEN WE GET TO A NEW
RECESSION I HAVEN'T SEEN
THAT KIND OF BUBBLE BEHAVIOR.
I HAVEN'T SEEN RUN AWAY ASSET
BUBBLES.
I DON'T EXPECT THE KNELT NEXT
TO BE A SEVERE DOWN
TURN.
Reporter: A FINANCIAL
ADVISER IS TELLING HIS
CLIENTS TONIGHT
CLIENTS DON'T OVER REACT.
Reporter: HE SAID YOUNGER
WORKERS WILL
EXPERIENCE MULTIPLE RECESSIONS
DURING THEIR CAREERS.
WE HAVE SEEN THAT AS AN
OPPORTUNITY TO BUY IT AT A
DISCOUNT.
WE LOOK AT THIS AS MORE OF AN
OPPORTUNITY.
Reporter: FOR WORKERS AT
THEIR MIDPOINT
REMEMBER THERE IS OFTEN A LAG
OF A YEAR OR MORE
BETWEEN RECESSION SIGNALS AND
THE START OF A DOWN
TURN.
LET'S SAY YOU ARE SOMEONE
WHO IS 60% IN STOCKS
AND 40% IN BONDS AND YOU KEEP
IT CHEAP WITHIN WITH THE
INDEX FUNDS.
IT'S NOT TIME TO RUN AND RAISE
CASH.
Reporter: WORKER WHO ARE
NEARING RETIREMENT MAY
WANT TO CONSIDER INVESTMENTS
NOT DIRECTLY TIED TO
STOCKS OR BONDS SUCH AS INCOME
PRODUCING REAL
ESTATE.
WHOLE LIFE INSURANCE WITH A
CAP VALUE THAT
DOESN'T GO WITH THE MARKETS
MARKET.
Reporter: AS ALWAYS ASSESS
YOUR PERSONAL
TOLERANCE FOR RISK AND INVEST
ACCORDINGLY.
CBS2 NEWS.
THE TRUMP ADMINISTRATION
SAID THAT WITH LOW
UNEMPLOYMENT, STRONG RETAIL
SALES AND ALSO GOOD
EARNINGS FOR A BIG FIRMS SUCH
AS WAL-MART THE
