Run for the hills or ride it out?

Upon reading several sections of financial news, I have seen that there is speculation about another recession, economists are debating on when this forecasted mild economic slump will happen, but general consensus is sometime between the first and second quarters. That is if the data and news articles are to be believed anyways. Is this more fearmongering and nervous tittering amongst our elite, or genuine concern?

I quite clearly remember the disaster that was the 2008 Great Recession. Home values plummeted, jobs dried up, gas and groceries skyrocketed, lives were torn asunder, and life as we knew it came to a screeching halt. It affected me on some seriously ground-rattling levels. I was one of those newly divorced, near-homeless, single moms trying to put the shattered bits of our lives back together on nothing. For a couple of years, we lived on breadcrumbs and pocket change. I don't intend on going back to that dark place again, recession or not.

Bank of America, Morgan Stanley, and Deutsche Bank all seem to agree that these two things will happen, according to Business Insider.

Three major Wall Street banks expect the S&P 500 to tank over 20% at some point next year.

US stocks face a recession, cuts to earnings outlooks, and liquidity risks as the Fed hikes rates.

During an economic downturn, businesses and consumers spend less and invest less, bringing stocks tumbling and financial institutions to a stall. While a 0.4% drop in economic growth does not seem like a lot, in financial terms and economic statistics, that can spell serious troubles for average consumers. You cannot borrow money or get a mortgage if there isn't enough to sustainably borrow. Financial institutions suddenly get very picky about who can borrow money and why. Add our highest inflation in decades, a war that seems to not have any end or resolution, and change minute political upheavals to that, and well you got yourself a fine kettle of rancid fish.

Run for the hills or ride it out?

Ideally and in a perfect world, we could say everything is fine, and there is nothing to worry over. However, if you have a lot of investments and are a wolf on Wall St., or perhaps have a lot of money tied up in high-end portfolios, then you might want to be looking into what you can sell off and liquidate before even a mild recession hits. An ounce of prevention can become a pound of cure. The only decent thing I can see about a recession is that home prices drop and that means those of us that wanted to buy a property or a home just might get a lucky break, there is sometimes a silver lining in the dark clouds. While your gain might be someone’s loss, you have to take advantage of all situations, especially in our current uncertain times. Be grateful for whatever blessings you happen to receive.

Most of us don't have a choice but to ride out whatever comes. Some of us can cut and run, and take what we have good going for us and make more of it. I personally do not have investments so I’m not losing much, as I don’t want my entire life and future dictated and gambled on by that S&P number going up and down like a yo-yo. While the stock market interests me, I am not brave enough to make that leap into investing. The riches-to-rags stories are sometimes true and I do not want that to be me. I have enough anxiety as is, thanks anyway.

However, I did realize recently, that I probably picked an iffy time to start up a freelance financial consulting business. I cannot sit here and just do nothing but twiddle my thumbs. I planted a seed, I just have to be patient while it germinates and grows. I may not see any success with it for a little while, but that gives me time to build myself up Only a fool expects success overnight. One thing I did decide on, was if and when we get approved and disbursed of Biden's student loan forgiveness, that will be literally half of my student debt erased, provided that the motion passes and people stop stalling on it. I would be smart to only just pay off the rest of what I owe and leave it at that for a while. Theoretically and in my mind at least, with enough serious hard work and dedication, I can make that 20K in a couple of years’ time. Provided that I am stingy and frugal enough, I can pay that money off fairly soon, and be almost debt free. A Master's and even a Ph.D., and even buying a home can wait a minute, while I work on paying off the 20K I will still owe. I know how to make those pennies cry, momma didn't raise any fool. I can pay only just our living expenses and eat beans and cornbread while I race down that loan debt. So, even if we get hit by another recession, I’m going to ride it out.