businessman in suit meditating on desk in office

The Risk of Recession is High

Byadmin

Man, the world really wants you to know there’s a recession coming.

He actually said it was a “very, very high risk factor”. CNBC downplaying the risk factor there. lol

A Look at My Portfolio

I had a look at my stock selections again today, just to verify if I was comfortable holding these names going into a 1-2 year economic downturn.

Enbridge (ENB) – the price of oil will remain high, Enbridge should continue to pay a high dividend and make good profits

Pembina Pipeline (PPL) – same as above

Pizza Pizza (PZA) – I like Pizza. I don’t think an economic downturn hurts the Pizza industry.

Bank of Nova Scotia (BNS) – OK, this company is vulnerable. Bad loans, fewer loans, writedowns, layoffs, bankruptcies – being in financial stocks may be risky for the next two years

Manulife Financial (MFC) – I still like Manulife. Solid company. Not sure how a downturn affects the insurance industry.

Great-West Lifeco (GWO) – same as above

NIO (NIO) – I still view them as the Tesla of China. Once China gets it’s C-19 act together, this company should still do well.

Vanguard Total Stock Index (VTI) – this is the safest play. Owning every company in the United States with a public stock.

Vanguard Megacap Growth (MGK) – similar to the Nasdaq 100. A risky play. But I think these stocks are already beaten down. Low risk actually.

BMO Microsectors FANG ETN (FNGS) – I think these stocks are already beaten down. Sure, ad revenue might fall in a recession. But companies have money to spend and ads are where the money goes.

Should I Cut Back?

Even if I like all those companies, should I pare back some holdings? Sell a little bit to reduce the risk, and get in at a better price in 1-2 years?

It’s hard to say that these are the names that will be a lower price in 2 years.

We’ve seen the stock market raging at the worst depths of the pandemic. The stock market and the economy don’t have to be working in the same direction.

I don’t like the volatility. But I still need to be more invested than I am. Successful investing is about taking risks when others are fearful.

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