A recession is a very real possibility, warn economists. President Donald Trump’s trade war with Canada, Mexico, the European Union, and other U.S. allies has investors worried. The Dow Jones Industrial Average has been plummeting, fueling fears of a possible economic downturn.
According to experts, a recession could be caused by the unpredictable nature of the trade policy and its impact on business certainty. Economist Gary Hufbauer says that the tariff story is “tremendously disruptive” and erodes confidence in future tariffs, causing businesses to put expansion plans on hold.
Personal finance expert George Kamel advises Americans to protect themselves financially during a recession by living below their means, getting out of debt, and saving three to six months’ worth of expenses. He also recommends investing in high-quality bonds as a reliable source of protection.
David Rosenberg, president of Rosenberg Research, suggests that investors cash in on their stock market winnings and shift to areas with proven reliability during troubled times. He cites “high-quality bonds” and Canada’s low-cost currency as potential safe havens for American investors.
Source: https://www.alternet.org/newsweek-trump-recession-survival