Recession: A Young Investor’s Dream…
Recently, the yield on 10-year Treasury notes dropped below that of the 2-year U.S. notes for the 4th day over the past two weeks. Simply put, this means an investor is willing to take less interest for a long-term investment than a short-term one. This is typically viewed as a fairly reliable sign of an impending recession. According to market analysts, recessions do not begin immediately after the inverted yield curve but on average lag about 17-months. Although it would be wise to pay attention and stay informed, the time to panic is not upon us just yet… especially if you’re a young investor. In fact, if you are a Millennial (ages 23 to 38) or Gen Z (ages 7 to 22) you should welcome a recession! Why? Most young investors, (decades away from retirement), do not have massive portfolio balances, and, therefore, will experience minimal loss and have plenty of time for their investments to rebound. A market downturn would allow an opportunity to purchase investments at a lower price and reap the benefits once the market bounces back.
Check out this recent article that explores this topic in more depth!
Recessions are a part of a normal, healthy market cycle. We work diligently to ensure we are taking every precaution to conservatively manage your portfolio. If you’d like to speak with one of our advisors about how your portfolio is currently allocated and protected please use the links below to contact us!
– Nick Schuessler