Preparing for uncertain times
This is a period of high economic turbulence. Inflation is rising, a war and energy crisis are escalating, and supply chains are still wonky. Fed is responding with interest rate hikes, governments are changing policies, and the market is responding with valuation cuts, tightening the belts, and layoffs. Times are uncertain, and that increases uncertainty for each of us too. That means we can get laid off, not find a job, our investments may tank, and we may not be able to afford or get what we need or want. No one can give us guarantees, and we are ultimately responsible for how we and our close ones will fare. This is how I'd advise people to prepare: 1. Personal resilience: Just like businesses do, make sure you have a robust runway by increasing savings (in low-risk, liquid assets) and reducing spending. Try to save for a few months of expenses to prepare for the eventuality of a layoff and a tough job market. If you want to take it up a notch, you can get in...