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The research placed the probability of a U.S. recession at 60%.
A potential recession could affect everyone, including Americas middle class.
Taking the last known U.S. median income of $80,610,3that includes any household earning $53,740 to $161,220.
If youre worried about a recession, know that there are ways to protect your portfolio.
Here are the topmoney mistakes to avoid during a recession and what to do instead.
But this could hurt your long-term goals and ability to build or preserve your wealth.
It can make even logical people emotional.
And it can hurt your overall wealth.
To build and protect long-term wealth, emotional discipline is non-negotiable.
Mistake: Selling When the Market Is Down
Investing requires a lot of emotional discipline.
But many people, especially less experienced investors, sell when the market is down.
However, this isnt the way tobuild long-term wealth.
When the market dips and we see our portfolios in the red, panic sets in.
Our natural instinct is to eliminate that pain, so we sell.
And then, when things feel safer, we buy back in, said Babin.
This behavior locks in losses and sets up a vicious cycle: selling low and buying high.
Repeat this pattern enough times, and it can wipe out decades of potential gains.
Some Americans experience such deep emotional trauma from a market loss that they never invest again, said Babin.
Thats mistake number two: letting fear take you out of the game permanently.
And if you dont, there are plenty of social media influencers that do the same thing.
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