3 Ways To Prepare Your Portfolio for a Recession

We have likely just entered a recession, which is defined as an economic decline lasting multiple quarters. Recessions are typically scary times for individuals, businesses, and the stock market. Yet this is an unusual recession. Since the current recession has been caused by a pandemic, and not an asset bubble bursting, with unprecedented government action to combat the economic fallout, there's considerable debate as to whether this recession will be quick, or if it could evolve into a longer depression.

While younger investors with a long time horizon probably shouldn't do much to their portfolios, older investors in or approaching retirement may wish to guard against that worse-case scenario, especially since the stock market has bounced back so much off its March 23 lows. Heck, even Warren Buffett is selling stocks, not buying them.