Navigating a Recession: Tips for Investors and Credit Card Holders.

While a recession may be looming, history shows that patient investors who maintain a long-term view and diversify their portfolios can still see handsome returns. The S&P 500 has performed reasonably well over periods of 10 or 20 years after economic downturns, with annualized total returns ranging from 6.4% to 12%. However, there are big variations among these averages, and shorter periods can see nasty losses. To mitigate risk, investors should hold cash in safe places and invest in broad, diversified, low-cost index funds that mirror the entire world markets.