3 Ways a Recession Will Impact Your Life

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I had desired to take a moment in order to reflect upon some of the many ways that the current recession will impact your daily life as well as those around you. Read and head.

1. Lose Your Job or Business

The old saying goes “a recession is when you lose your job but a depression is when I lose mine.”  People lose their jobs regularly during economic downturns. Businesses are much more likely to fail due to the downturn as well as consumers cut back on their buying. This is one of the biggest impacts of a recession, particularly like the one we are currently in now in 2008.

2. Can’t Pay Back Your Mortgage and Other Loans

A sudden loss of job or drastic reduction in business income often causes the significant problem of a negative monthly cash flow. Often this situation can also cause a person or business to go into bankruptcy suddenly. When one faces foreclosure on a home this can cause the home to be auctioned off for less than what it is worth. In a worst-case scenario, even after the home is sold in a foreclosure sale, you could still owe the bank a significant amount of money.

3. Your Investment Portfolio Shrinks in Value

When people have been investing too aggressively in a bubble economy this high exposure in risk equity will result in a sharp decline in the stock market, usually over a very short period of time. In the extreme it is likely that your investment stock portfolio will shrink 50% within a matter of only a few days. Therefore, cash and precious metal investments are your best investment bets during a recession like we are now facing.

This entry was posted on Saturday, November 25th, 2017 at 9:15 pm and is filed under Recession. You can follow any responses to this entry through the RSS 2.0 feed.

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