Your recession survival checklist: 11 actions to consider

High inflation, aggressive central bank tightening and rising geopolitical risks have complicated the economic outlook this year, fueling recession worries. The Bank of Canada (BoC) is attempting to tame inflation by increasing borrowing costs, but not so much as to trigger an economic downturn.

Although higher interest rates will likely continue to slow consumer spending and growth through year-end and into 2023, a recession isn’t a given, as economic and earnings resiliency can provide some support. If a recession occurs, we believe it will be mild, based on the absence of any major economic imbalances.

With such a wide range of potential outcomes, how can investors prepare their portfolios? Here are some ways you can prepare you and your family for a potential slowdown in economic growth.

Investment Policy Committee

The Investment Policy Committee (IPC) defines and upholds Edward Jones investment philosophy, which is grounded in the principles of quality, diversification and a long-term focus.

The IPC meets regularly to talk about the markets, the economy and the current environment, propose new policies and review existing guidance - all with your financial needs at the center.

The IPC members - experts in economics, market strategy, asset allocation and financial solutions - each bring a unique perspective to developing recommendations that can help you achieve your financial goals.

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Important Information:

This is for informational purposes only and should not be interpreted as specific investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation. While the information is believed to be accurate, it is not guaranteed and is subject to change without notice.

Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity.

Investors should understand the risks involved in owning investments, including interest rate risk, credit risk and market risk. The value of investments fluctuates and investors can lose some or all of their principal.

Past performance does not guarantee future results.

Market indexes are unmanaged and cannot be invested into directly and are not meant to depict an actual investment.

Diversification does not guarantee a profit or protect against loss in declining markets.

Systematic investing does not guarantee a profit or protect against loss. Investors should consider their willingness to keep investing when share prices are declining.

Dividends may be increased, decreased or eliminated at any time without notice.

Special risks are inherent in international investing, including those related to currency fluctuations and foreign political and economic events.