The Good News About Recessions for Investors

Yes, an official recession is possible, but based on previous recessions, there could be reasons for investors to smile. With that in mind, here are three ways to position your portfolio now – and one major mistake not to make.

A woman with a big smile on her face.
(Image credit: Getty Images)

Are we going into a recession? This question has been in the news and on the minds of investors for months, and the recent announcement that GDP has decreased for the second straight quarter makes the question even more pressing.

A recession implies trouble for investors. Many believe that once a recession is announced, the stock market will drop sharply – and so changes will be needed to their portfolios to weather the storm. But history indicates a different scenario. Instead of dropping further when a recession is officially announced, the market often moves up.

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Nick Fazio, Investment Analyst
, CI Brightworth Private Wealth

Nick Fazio is an Investment Analyst at CI Brightworth in Atlanta. He provides quantitative and qualitative analysis of current and new investments, communicates the firm’s investment philosophy and outlook with advisers and clients, and conducts investment research on behalf of the CI Brightworth Investment Committee. He also serves as an analyst on CI Brightworth’s US Large Cap stock strategy. Nick holds a B.S. in Business Administration from the Georgia Institute of Technology and is a Certified Public Accountant.