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Avoiding These 3 Mistakes Can Make Your Portfolio Recession-Proof

Let’s face it, from main-street to Wall-street, everyone is hurting. Equities just posted their worst quarter in a decade, and jobless claims skyrocketed to more than 7 million in the last two weeks.

To see why things will get worse before they get better, it’s important to understand the cost a lengthy shutdown imposes on the economy. A recent JPM study finds that half of all small businesses – companies employing fewer than 500 people – have cash reserves of 27 days at most. Three-quarters can hold out for up to 2 months. Small businesses employ about 48% of the entire country’s workforce: 60 million workers. It takes a moment to take this all in.

Faced with the possibility of the “Greater Depression,” investors have to think carefully about how to manage their portfolios through it.

There’s an old expression that, even though history doesn’t repeat itself, it often rhymes.

Learning from past recessions, here are three things to avoid.

Panic Selling

Avoid Growth-levered Sectors

Avoid Leverage