Preparation for Recession

The longest economic expansion in the entire history of the United States lasted from March 1991 through March 2001, a period of 120 months. Right now, the United States has not experienced a recession for 118 months, with economic expansion characterizing the period from June 2009 through the present. If there is no recession prior to summertime, this will be the longest uninterrupted period of growth in the history of the United States.

When we are amidst such a period of economic growth, I believe the question of “What to do next?” involves re-focusing on the very things that we ought to be doing all along.

Primarily, this means focusing on cash and fair valuation for any investments that you make.

Regarding cash, the appeal of keeping 10% to 20% of one’s assets available as dry powder is nearly self-evidence. To paraphrase Warren Buffett’s citation of his grandfather, “Cash is … Read the rest of this article!