Looking Forward …

Recessions are a natural and necessary part of every business cycle to remove excess, reprice assets, and tame risky behavior. While recessions have been relatively short and infrequent in comparison to expansions, they must be expected and can be mitigated through proper asset allocation, diversification of asset classes, and emergency funds- to name a few. It is vital to maintain perspective and have a long-term view. Financial plans are an excellent way to test your ability to withstand a large recession and give confidence that your assets are sufficient to meet your goals before, during, and after recessions.