Thriving, Not Surviving, In Periods Of Economic Chaos

Approach Portfolio From a Risk-Averse Perspective

While having a good selection of the top dividend stocks is going to be vital in anyone’s portfolio even during the most tumultuous of economic climates, there are other things that you can do to improve your portfolio’s resilience.

Around the world, plenty of people are feeling more risk-averse than they were twelve months ago. Economic anxiety does not appear without good reason either.

More prepared people will come out of the other end of this global moment better no matter which way events play out on the worldwide scene.Like a seatbelt, it is better to have it and not need it, then it is to need it and not have it.

Here are the best things you can do to make sure you are prepared for any scenario.

Maximize Your Passive Income Flow

You can only work so many hours in a day. Of course, you can try to improve your hourly income, but when unemployment is at record levels, you’ll face fierce competition. Maximize your time by creating passive income streams that work while you are.

Passive Income

Passive income is any money that you earn without active involvement.

Risk-Free Investment

A risk-free investment if anything looks just like passive income streams because they do not require you to take time out of your day once they are up and running.

Do Not Fight the Fed

The Federal Reserve has demonstrated that after the last downturn of the Dow Jones financial markets, its support can turn the worst economic times into all-time highs.

Mixed Market Economics

Free market economics has been out of the window since the 1930s despite what economist might tell you. Our central banks lend enormous support during times of economic uncertainty to companies. They decide which companies deserve financial support.The prudent investor could take advantage of such knowledge.

Keep an eye on the Federal Reserve’s balance sheets to see which companies it is lending its support to on the financial markets this week.

Do Not Give in to the Fear of Missing Out

It is easy to see a stock triple in value and start investing only to lose everything as it crashes to nothing shortly. Do not let a quickly rising stock entice you by making you afraid that you will miss out. The fear of missing out has many rookie investors striking out until they are penniless.

FOMO

If you look on the internet, you will see the letters FOMO on finance boards; this is an acronym, “fear of missing out,” used by junior members of the financial industry to describe the fear of missing out on a good investment.

Listen To Other Experts Who Have Weathered Economic Storms

Lower risk investing strategies have been developed by people who have been through worse times than you have no matter how bad they are. No matter how unprecedented a situation may appear to us and the mainstream media, a history book will tell you that it is anything but unique.Listen to the people who struggled and gained wisdom from those times.

While they may not be around to give live speeches on television, some of the most cunning investors have spent hours cataloging their knowledge in books available to all at libraries around the world.

Focus on a Side Business or Extra Income Stream

When the economy becomes uncertain, employment often becomes less than guaranteed.The only boss you can trust is your self. Try to start up a side business even if you already have a job.

If you have a small side business started, you can ramp it up much more quickly than if you had nothing started at all. That is some serious upside potential, and more economic security than any job or boss can offer.