According to financial experts, August 22, 2018 signified the longest bull market in American history by lasting 3,453 days. Investopedia.com defines a bull market as "a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline." If you like to keep things simple like I do, think about how a bull attacks by thrusting its horns upward. In contrast, a bear swipes its paws downward when attacking (hence, bull versus bear market). Nobody can determine exactly when a bull market will end. In preparation for the next downward trend, here are a few things you can do today.
Stash More Cash - When stock prices fall (or many other things in general), many people see this as a time to buy. If you don't have any additional cash, you're guaranteed to miss out on an opportunity.
Get a Side Hustle - After a friend of mine was laid off from his corporate job, he started delivering pizzas and packing trucks for a well-known logistics company (he credits that job with him losing 35 pounds). Now that he's back in corporate America, he still delivers pizza a few nights a week. He calls it his fun money. Does he have to do this? Probably not, however, he and his wife have a few financial goals so the extra income allows them to stay on track.
Update your Brag Book and Resume - I hope that you keep specific records regarding all the goals and accomplishments achieved at your 9 to 5. You know, the things you like to talk about during your yearly performance review. If your company, for some reason, had to reduce its labor force, you could be one step ahead of the competition.
Reignite connections in your network - Most of us are friends with people whom we share similar characteristics or interests. That's great but often times this does not come in handy if you are seeking new employment. Keep those old relationships but focus on reconnecting with individuals who might be in a position to help you get to the next step in your career.
Review your portfolio - When (not if) the stock market begins to fall and you have a large portion of your investments in equities, the risk of losing money is greater because of your exposure. Depending on how close you are to retirement, this might not be of concern or it could be crucial to your long-term financial well-being.
Don't Wait! - You may have heard the old saying, "If you stay ready, you don't have to get ready." Markets will rise and fall just as sure as the sun is hot. When you execute proper planning, you can sometimes prevent poor performance.
What financial and non-financial moves are you making to prepare for the next recession? Please share your comments.