By definition a recession is a Far-reaching and extended period of Declining economic activity it’s Measured by looking at a country’s GDP Or gross domestic product employment as Well as retail sales for the most part While the typical goal post for a Recession is two consecutive quarters of Negative GDP or declining economic Activity and according to an economic Output report from JP Morgan things Could get a little bit messy in 2023. Here’s what you need to know while JP Morgan believes the United States could Enter a mild recession by the end of 2023 certainly not the beginning however They still expect to see slight overall Economic expansion in 2023 to the tune Of 0.5 percent to one percent in this Mild recession that is likely coming our Way is a direct result of the federal Reserve’s fight against inflation Through interest rate hikes now on the Topic of Interest rates the good news is That JP Morgan’s head of research thinks That there’s only going to be an Additional 100 points of increase or one Percent well based on all of this how Can you prepare your Investment Portfolio for what’s ahead in 2023 we’ll Be exploring that very answer today also This video is sponsored by fundrise but More on that later so let’s talk about The strategy now of tax loss harvesting
Number five on our list while nobody Likes talking about losses in the stock Market the truth is we all have them Well at the end of the year a lot of People will end up selling these losing Positions that they essentially bag held Through the prior 12 months so if you Have some Duds in your portfolio you Could consider selling them and then Using those losses to offset other Potential capital gains that you may Have here’s an example of this in action Let’s say you sold Tesla stock in 2022 And you had a capital gain of ten Thousand dollars then let’s say you were Also down fifty percent on metastock or A dollar value of five thousand well if You didn’t believe in the long-term Future of meta you could sell your Shares of meta and recognize that five Thousand dollar Capital loss and use That to offset your ten thousand dollars Of capital gains from Tesla meaning you Would only pay taxes on five thousand Dollars of capital gains now two things To note here if you do plan on actually Deploying this strategy learn about Something called The Wash sale rule as That is very important also the last day Where you could sell shares in the United States is December 30th so you May want to mark your calendar hey guys Real quick before I get into the next Investment strategy I recently found out
That about 89 of my viewers are not Subscribed to the YouTube channel so if You could do me a huge favor and pay Take two seconds hit that subscribe Button and then if you want to see more Videos just like this one make sure you Hit that Bell and click on all Notifications thank you guys so much so Strategy number four is to zoom out and Look at the big picture as investors we Often fall victim to something called Tunnel vision now while this is a Legitimate medical condition that’s not What I’m referring to here what I’m Talking about is only focusing on very Specific details and pretty much Ignoring everything else this could also Mean focusing in on a very small amount Of time whether it be a couple of months Or even a couple of quarters well the Remedy for this is to zoom out and look At the long-term time Horizon however That’s easier said than done so I have a Thought experiment for you to follow at Home so I want you to actually do this Here’s the thing Warren Buffett has Owned certain stocks for many decades For example he originally bought Coca-Cola back in 1988 meaning he’s held On to many of those shares for 34 years So what I want you to do is visualize The stock in your Investment Portfolio That has the biggest losses right now And then I want you to go ahead and
Project out 34 years into the future we Would be in the year 2056 and I want you To ask yourself where do you think that Company will be is this company Potentially the next big thing or is it Possible that they’re long gone because They went bankrupt in fact I’m really Curious about what you guys have to say As a response so please leave me a Comment down below with your future Predictions about some of these losers That you may have in your portfolio and Again don’t feel bad because everybody Has them if you own individual stocks I’ll be sure to read and respond to Every one of those comments I get myself So overall I would recommend this Thought experiment especially when You’re sitting there trying to figure Out if you want to maybe hold on to Certain stocks or maybe sell other Losers in your portfolio potentially Taking advantage of that tax loss Harvesting that we just talked about Strategy number three is to Simply Concentrate your positions and it’s sort Of a combination of everything that We’ve already talked about here maybe Selling off a couple of those losers in Your portfolio at the end of the year That after projecting out into the Future you just don’t think there’s a Great long-term Prospect well the Question becomes what do you do with the
Proceeds of those assets that you’ve Sold well what you do with that money is Ultimately up to you and truth be told If you have deaths or anything like that That’s where that money should go if you Wanted to reinvest that money a popular Strategy that hedge funds often follow Is concentrating their positions into Their highest conviction bets so for Example what is someone like Kathy Wood Do during a time like this well during 2022 she has been very actively thinning Out the herd or selling off her lower Conviction plays and putting that money Into her higher conviction bets Increasing her position size for her Shareholders and also lowering that cost Basis in the process so if you wanted to Follow this hedge fund type strategy Within your own portfolio you would Essentially look at all of the stocks Project out into the future 10 20 30 Years and then you would assign a Conviction score to each of those Companies in terms of how high or how Low your conviction is in terms of that Being the next big thing and then you Would allocate your money accordingly Putting your money into your own highest Conviction bets and then of course if You’re selling off stocks for losses Maybe you get some Capital losses in the Process and you know all of that good Stuff so it all can blend together into
An overall strategy that you have around Investment losses that we’re all going To experience number two is to Simply Invest in growth so how about those out There who may have kept their powder dry Over the last few years and they’re Sitting on a massive amount of cash to Potentially deploy and maybe even Sprinkle in a little bit of worry about Inflation on their potentially making You eager about what to do with this Pile of cash that you might be sitting On well one strategy to consider would Be to ease back into Mega cap growth Stocks over time taking advantage of Some of these massive discounts that we Have seen take place over the last 12 to 18 months now before you go blindly Plowing your money into Fang or the big Tech stocks out there it’s important to Understand why many of these names Dropped in the first place also we Talked about in the intro that at least Another 100 Point rate hike is expected For the most part so it is very well Likely that growth stocks continue to Fall in 2023. here are some of the Biggest drops that we saw in 2022 among Big Tech metastock is down 64 percent Year to date that’s because the Metaverse resulted in massive losses and Apple’s privacy tracking update ended up Costing them around 10 billion dollars Of lost Revenue next up we have Netflix
Stock which is down 46 year-to-date they Announced surprising losses in Subscribers after a decade of growth so While you may be tempted to dive head First back into growth stocks keep in Mind that the Federal Reserve is still Actively hiking interest rates and that Is likely to have further downward Pressure on growth stocks so just don’t Be too eager and I would recommend Following a strategy of dollar cost Averaging and just planning on buying Shares on a routine schedule of big tech Companies that you like maybe it’s Google Amazon Apple things like that you Know these are certainly some of the Best prices we have seen on those in Years but bear in mind that they could Get better in 2023 finally guys number One on the list here is to diversify Your investments into other asset Classes so the funny thing about this is That a lack of diversification can Actually result in higher investment Returns during years when we are in a Roaring bull market and this can Actually be very reinforcing of a bad Behavior which is the bad behavior of Inadequate diversification AKA putting All of your eggs in one basket and even If you have your money invested across Many different stocks or ETFs you have All of your money invested in public Equities and you’d want to eventually
Have diversification into other asset Classes out there so the lack of Diversification that often leads to Massive returns generated in a bull Market can be detrimental to an Investor’s success when that market Turns around and a lot of people have Experienced that first hand so whether Or not you are somebody who got lucky in The bull market or you got burned in the Bull market either way diversify your Investments in today’s video sponsor Could help you to diversify some of your Money into private real estate Equity Fundrise is the country’s largest direct To investor alternative Investments Platform for consumers with a six Billion dollar portfolio built to Outperform today’s volatile market Conditions in 2022 fundrise investors Experienced a year-to-date average Return of 5.4 percent and out Performance relative to the stock market Of approximately 30 percent and while Past results do not guarantee the same Outcome especially in financial markets Those who had exposure to real estate in Their portfolios in 2022 experienced a Significant benefit so if you want to Get started today with fundrise be sure To visit fundrise.com Ryan Scribner or click the sponsored Link down in the description below and Once again thank you fundrise for
Sponsoring today’s video so regardless Of whether or not there’s a mild Recession in 2023 or not you’re now Prepared with what steps you may want to Consider to prepare yourself for Uncertain times in the market and keep In mind that while the bull market is Often the most fun and exciting it’s the Bear Market where the real money is made As assets are often discounted heavily For those who have the patience and the Wherewithal to be able to find them and Then buy them in the right Manner and All of those important steps once again Guys be sure to subscribe and hit that Bell and turn on all notifications for Future videos as I have an upcoming Video about five cash flowing assets Outside of the stock market that I Really don’t think you want to miss be Sure to check out fundrise via the Sponsored Link in the description below And I will see you in in the next video
