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But while no investment is ever truly without risk, there are ways to help you weather economic downturns.
Still, it never hurts to choose a few safe investments for your portfolio.
The dividends can be reinvested for continuous growth over the long term.
This can help you determine the total average returns.
Be aware that precious metal prices usually rise and fall with demand.
Be cautious when investing and be prepared to hold onto your investments for the long term.
Speaking with an investment advisor could help you make an informed decision.
They can then earn interest or dividends off that investment.
ETFs offer diversification with lower risk during a recession, but are still subject to market risk.
Depending on how you go about it, you could see some real long-term growth.
Ideally, youll keep this money separate from your regular checking and savings so you dont accidentally spend it.
Your fund should still be easily accessible, though.
Putting it in ahigh-yield savings accountcould be a good option.
That way, you might still reach it if need be.
Plus, your money can earn more interest the longer it sits untouched.
Choose an FDIC-insured account for added security.
Strategies for Minimizing Risk During a Recession
You might not be able to fully eliminate risk.
But you’re able to absolutely minimize it.
Recession-proof investing starts with determining your short- and long-term financial goals.
After all, every investors goals, needs and risk tolerance is different.
Some of the safest options include government bonds, high-yield savings accounts and money market accounts.
Defensive stocks, such as utilities or healthcare, can also help reduce risk while allowing for long-term growth.
Start small and focus on the long-term.
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