Investing During Recessions - How Should Investors Prepare?

00:00 - Introduction
01:22 - Recessions and the current environment
03:28 - Timing the market
05:03 - Safe havens
06:15 - Sector rotation
07:16 - Why recession-based investing is misguided
09:33 - 1) Review risk tolerance
10:46 - 2) Review risk position
11:53 - 3) Take advantage
12:28 - Conclusion

DISCLAIMER:
This channel is for education purposes only and does not constitute financial advice - Richard is not responsible for investment actions taken by viewers. Please seek out a registered advisor if you require assistance (while Richard is a registered portfolio manager at WDS Investment Management, he does not provide advice through The Plain Bagel, which is not affiliated with his employer).

[MHousley]

Investing in equities has always required riding out the ups and downs. So when fear is high, it may be time to be contrarian: investors should consider it an opportunity to not only stay invested, but to also buy while prices are depressed.

[CarlBranco]

This channel should be included in high school curriculum for grades 11 & 12.

[aaronloh]

This is the most handsome financial nerd with prudent, sound and wise advice for investing!

[ricardolaporte]

Here from the future. Imagine if you had pulled out of the market in 2022 and missed all these gains

[MJ-uklu]

Exactly the same as always. Stay the course and happy Bogling.

[richardbartolo]

Great video once again...

For over 30yrs I've been contributing into a company sponsored RRSP. I've watched the market go up and down. Through it all I just let it ride and sure enough with every drop in value it roars back shortly after. I worried with first couple drops but now I know that every pay I'm just buying more units and when it comes back look out.

[MrDPMan]

Thank you Richard. Lessons like what you discussed in this video are an important reality check for many trying to "prepare" but in reality can end up harming themselves.

[xKamixx]

I'm honestly glad I've found this channel. I'm so sick and tired of clickbait content.

[Finkeldinken]

This is very interesting, and I learned a LOT.
Richard Bagelfiend, have you ever made videos on how to gauge how we as potential clients choose the right person to handle our investments if we choose to delegate it?
What are some dos and don'ts, red flags, and such?

[alexandercallender]

Richard, you're great at what you do and its always a treat when I get the notification for a new video. Thank you!

[JoselitoBurrito]

"What's your risk tolerance?"
Crypto investors: yes 👍🏻

[vinnyC-]

Having dry powder is very important right now. I would buy short term T Bills. 4.6% return risk free is great.

[ShannonWare]

Doing the sane, reasonable, and prudent thing for a long time is hard. Believing the hype and jumping on the bandwagon is easy. Just ask Kevin O'Leary. His due diligence for FTX was that other "investors" (gamblers) were eager to get in on it... 1929 to today, the more things change, the more they stay the same.

[jebjim]

As a "sort of semi-seasoned investor", most of the topics you cover aren't new to me but I enjoy them.

[tmlmcd]

Its good hearing all this. I have a few etfs and some long term held companies and when going through them I didn't really feel compelled to sell any of them due to a possible recession. Likewise I have some managed rrsps from a few places that I dont plan on adjusting contributions to. I have about 30% of my self managed portfolio cash and I think I will just continue adding more of what I have already if they dip. Time in the markets should smooth out any short term rollercoastering

[caseymarion]

Thanks for this level headed presentation, people are freaking out and it’s hard not to panic. You got a new sub today

[Thomas-poex]

Nice to have someone actually explain instead of fear monger about the market crashing and to sell everything in the headline. I have personally been investing pretty aggressively in the stock market this year. I am in my mid 20's and I see no reason why I should not be able to weather this storm even if it takes a while to make my money back. As long as I have decent savings for any emergency no reason not to weather the storm especially since I mainly invest in the general market and not specific sectors. I am thinking of slowing down some next year though and focusing more on paying down my debts so if anything bad were to happen with my situation I would not need as much money just to survive.

[lilytea]

0:44: 📉 Investors are growing concerned over a potential recession due to high debt levels, increasing interest rates, and sell-offs in major asset groups.
3:45: 📉 Trying to time the market or sell everything during a recession is a losing strategy due to the clunky returns of the market.
7:22: 📈 Building investment strategies around predicting recessions is misguided.
10:14: 💰 Before investing, consider your financial situation, risk tolerance, and the importance of diversification.
13:09: 📚 Proper risk management and confidence in quality businesses can help navigate uncertain times in the stock market.
Recap by Tammy AI

[PeterStinklage]

It's funny, in late 2019 I asked in a forum if I should move my 401(k) into bonds because it seemed like the market was due for a crash, and someone told me "don't try to time the market" and I thought fair enough, I'll leave it alone. Then March 2020 came around, and I saw the crash I was waiting for, and wondered if I should have made the move. But the 10 best days thing is pretty compelling to me, and I realized that once that crash happened, I might have been constantly second-guessing myself on the right time to go back into the market, adding much unneeded stress to my life.

[michaelmackinnon]

Like that you used the Shiller PE ratio. The Mazda ad in the screen shot was 👌