Will the Coronavirus Cause a Global Recession?

The Principle:

As coronavirus impacts our lives, it’s hard to not wonder if we are heading into a recession. What can we do to weather this storm financially? Let’s discuss the fallout from COVID-19. 

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Honest Takes:

Some people believe we are facing a major recession, perhaps even a global one, because of coronavirus. Mohamed El-Erian, the Chief Economic Advisor of Allianz, which is a huge global investment conglomerate, even said so. What does Brian believe? And how can we best prepare?

Right now, governments in developed countries all over the world are shutting down the economy, which may cause repercussions for months and months. What does that look like for people living paycheck to paycheck? Or even for those with money in the bank when we can’t go to school or work or restaurants?

How can you get through this? Some people have been in aggressive investments for a while and now they are paying for it. At some point, in any bull market there is a correction. Historically, there’s been a recession roughly every seven years. So, is this the fault of thecoronavirus?

Are there ways you can benefit from this bad situation? Brian talks through ways we can make the most of this situation when it comes to our financial portfolio, including explaining tax loss harvesting. Every little decision you make can create a fine-tuned financial plan. If you don’t have a solid plan, now might be a good time to revisit it.

Listen to the full episode with the player above or click on the timestamps below to skip ahead to a particular segment.

[0:16] – We could see a global recession with coronavirus.

[1:45] – Governments all over the world are basically shutting down the economy.

[3:24] – How do we get through this with as little damage as possible?

[6:47] – How can you benefit in a bad situation?

[9:44] – Do you know what tax loss harvesting is?

[14:52] – You have to make little adjustments all over your portfolio.