Prepare for the Worst, Hope for the Best

"I am prepared for the worst, but hope for the best." ~ Benjamin Disraeli

With the upcoming inauguration of Donald Trump, this may be a good time to be cautious and be prepared for the the worst, e.g. economic recession, stock market selloff, or a global trade war, which has been forecast by several pundits.  Who knows what may happen.   This may be a good time to have higher than normal cash/cash equivalents as a buffer, to purchase protective puts (downside insurance), or take some profits in select stocks should the worst economic scenarios happen.

On the other hand, the Trump administration may perform well above (low) expectations, which lead to economic expansion and continuation of the bull stock market.   In that case, it would be good to own stocks and other assets such as real estate.    So it may also be a good time to hold onto core position should a positive economic scenario occur.

In either case, it may be best to wait a few more weeks for the market to show some conviction in a direction.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial advice. Please consult a professional advisor.

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