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How to Protect Your Investments During a Recession

Protect Your Investments

The stock market crash of 2008 is still fresh in many investors’ minds, as the Dow Jones Industrial Average fell by more than 50%. This was a tough time for investors, as many saw the value of their portfolios plummet.

If you’re worried about another recession, you may be wondering how to protect your investments. While it’s impossible to predict the future, there are some steps you can take to help weather a potential economic downturn. Bill Schantz will now explain what you can do to protect your investments.

5 Steps to Protect Your Investments During a Recession per Bill Schantz

Review Your Portfolio Regularly

According to Bill Schantz, it’s important to keep tabs on your investment portfolio regularly, but it becomes even more crucial during times of market volatility. By monitoring your portfolio, you can make sure your investments are still aligned with your goals.

If you see that some of your investments have lost value, don’t panic. It’s normal for the market to go up and down, and you shouldn’t make any rash decisions.

Consider Your Time Horizon

Your time horizon is an important factor to consider when making investment decisions. If you’re planning on retiring soon, you may want to be more conservative with your portfolio. On the other hand, if you have a longer time horizon, you may be able to weather more volatility.

It’s also important to remember that stock markets tend to rebound over time. So even if there is a downturn, don’t give up on your investment goals. Stick to your plan, and you should be able to weather any storm.

Diversify Your Portfolio

One of the best ways to protect your portfolio during a recession is to diversify your investments. Investing in different asset classes can help offset any losses in one area with gains in another.

For example, if stocks are struggling, you may be able to find some relief with investments in bonds or real estate. By diversifying your portfolio, you can help reduce your overall risk.

Dollar-Cost Averaging

Bill Schantz knows that investing can be a tricky business, and it’s easy to get caught up in the market’s ups and downs. A good way to avoid this is to use dollar-cost averaging.

With dollar-cost averaging, you put a certain amount of money into different securities at intervals. This technique can help take the emotion out of investing and can also help you buy assets when they’re down.

For example, let’s say you want to invest $1,000 in a stock that’s currently trading at $10 per share. If you invest all at once, you would own 100 shares. But if you instead invested $200 every month for five months, you would own 125 shares (assuming the stock price didn’t change).

This technique can be especially helpful during a recession, as you may be able to buy assets at a discount.

Stay Disciplined with Your Investments

It can be tempting to make changes to your investment portfolio during a recession, but it’s important to stay disciplined. If you try to time the market, you’re more likely to lose money than make it.

Instead of trying to predict the next market move, focus on your long-term goals. This will help you stay calm during times of market volatility and make better investment decisions.


These are just a few tips by Bill Schantz on how to prioritize your investments during a recession. By following these guidelines, you can help protect your portfolio from potential losses.

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