In September 2023, I wrote a post entitled, “How To Prepare For A Recession” and I’m glad I did and took actions I recommended. This week, the company I work for laid off hundreds of people and we’re not sure if the carnage is done yet. I can tell you many people were shocked and ill-prepared. Fortunately, I wasn’t laid off but I’ve been on the burnout edge for years so it would have been great relief if it had happened. I am also well prepared with huge cash reserves and optimized investments including using a collar strategy to limit losses.
It’s not just my company that is laying off people. CNBC is reporting that layoff announcements have soared:
U.S. employers announced 172,017 layoffs for February, up 245% from January and the highest monthly count since July 2020, Challenger, Gray & Christmas reported.
The layoffs have cascading effects as non-working people don’t tend to go out to eat at restaurants, reduce their overall spending which leads to more layoffs as the pain and misery trickles down to other firms.
The stock market hasn’t been happy the last few weeks and it feels like an endless bloodbath but it’s important to remember that the stock market is forward looking so if it deteriorates further, then expect the economic situation to get worse too. Costco’s recent mixed earnings are another warning that things are well across America right now.
What’s Next?
I honestly don’t know what will happen next but my thoughts are along my recent posts:
How To Prepare For A Global Depression
AI: Risk Mitigating Investment Portfolio During Tariff & Trade War
Managing Equity Risk In A Stock Portfolio
Are You Prepared For A Lost Decade
Share The Wealth
Are you prepared for a layoff? Let me know in the comments below.