There has been speculation as to whether we are going through a recession, or headed into one right away.
Financial expert, Aaron Ruston from Purposed Financial, has valuable information on recessions and how people can protect their money.
"A recession is a place where for two straight quarters, there is a decrease in economic growth within a country, sector, or even a global base overall," Ruston remarked.
As a result, interest rates climb, production of goods declines, people lose their jobs, and economic growth slows or backs down, which brings about concern in the markets.
Interest rates hit a four-decade high of 8.1% in the summer of 2022.
"[In 2022], everything that had been jammed up was suddenly released onto the markets," Ruston recalled. "We had interest rates rising eight bumps upward over just under a year."
Ruston says that interest rates should undoubtedly be dropping soon, which means a great place to have a portion of your portfolio is in bonds. As interest rates drop or come down, bonds that people are holding in their portfolios are becoming more attractive all the time.
"Good solid equity, dividend producing stocks, and good bond positions overall will get us through this potential recession, allow us to ride through, and avoid a bit of the chop that is still existing in markets today," Ruston commented.
If you are looking for more financial guidance, visit Purposed Financial at 81A Athabasca Street West, visit their website at purposedfinancial.com, or give Ruston a call personally at (306) 684-1934.