• Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Focus on liquidity

Spooked by the ongoing banking crisis, business leaders were actively reviewing the liquidity of all stakeholders. According to the The Conference Board survey, 62% of CEOs were reviewing their banking relationships

“Large numbers are also reviewing their firms’ risk management practices and liquidity adequacy—as well as those of customers and suppliers,” said Roger W. Ferguson, Jr., Vice Chairman of The Business Council and Trustee of The Conference Board.

Simply put, some business leaders are worried that their counter-parties might run out of funds in the months ahead and are shoring up their capital reserves in preparation.

Ordinary savers and investors should probably do the same. Boosting cash reserves and spreading it out across government treasuries, corporate bonds and different savings accounts could be the best way to mitigate the risk of an economic crisis.

How to get a free $20 to invest in your future

An app called Acorns automatically rounds up purchases made on your credit or debit card to the nearest dollar and places the excess "change" into a smart investment portfolio. Acorns offers a $20 welcome bonus, immediately from your first investment.

Get $20

Cut back on expenses

Less than a third (27%) of CEOs surveyed said they expect to increase their capital budgets in the coming year.

Managing expenses is a key way to protect one’s finances from an economic crisis. Dozens of companies have already taken the extreme measure of laying off thousands of workers this year.

Regular savers can exercise belt tightening on a small scale.

Consider cutting back on vacations, big-ticket purchases and unnecessary expenses.

Seek out opportunities

All the doom and gloom doesn’t necessarily mean you should hide your valuables under a mattress. Instead, these conditions could be favorable for contrarian investors.

Warren Buffett certainly seems to be on the offensive. In the first quarter of this year, the legendary investor boosted his stake in Apple, Occidental Petroleum and a range of other stocks.

“Bad news is an investor’s best friend,” Buffet famously noted in a 2008 op-ed for the New York Times.

Lower valuations could be a good opportunity to invest some excess cash. For example, you could consider growth opportunities in the emerging field of artificial intelligence, income opportunities in the bond market or dividend opportunities in the energy sector.

Sponsored

Follow These Steps if you Want to Retire Early

Secure your financial future with a tailored plan to maximize investments, navigate taxes, and retire comfortably.

Zoe Financial is an online platform that can match you with a network of vetted fiduciary advisors who are evaluated based on their credentials, education, experience, and pricing. The best part? - there is no fee to find an advisor.

About the Author

Vishesh Raisinghani

Vishesh Raisinghani

Freelance Writer

Vishesh Raisinghani is a freelance contributor at MoneyWise. He has been writing about financial markets and economics since 2014 - having covered family offices, private equity, real estate, cryptocurrencies, and tech stocks over that period. His work has appeared in Seeking Alpha, Motley Fool Canada, Motley Fool UK, Mergers & Acquisitions, National Post, Financial Post, and Yahoo Canada.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.