{"id":23726,"date":"2022-07-04T17:01:35","date_gmt":"2022-07-05T00:01:35","guid":{"rendered":"https:\/\/genuscap.com\/?p=23726"},"modified":"2026-03-17T13:38:21","modified_gmt":"2026-03-17T20:38:21","slug":"3-ways-to-prepare-for-an-economic-downturn","status":"publish","type":"post","link":"https:\/\/genuscap.com\/fr\/3-ways-to-prepare-for-an-economic-downturn\/","title":{"rendered":"3 fa\u00e7ons de se pr\u00e9parer \u00e0 une r\u00e9cession \u00e9conomique"},"content":{"rendered":"\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

An Investor\u2019s Guide to Surviving Market Volatility<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

For a younger generation of investors, the past dozen years have been a mostly stress-free experience. After the Great Recession of 2008-09, North American stock markets experienced an unprecedented 11-year bull market\u2014with stock prices rising 400 percent<\/a>[1]<\/sup><\/a> between 2009 and 2020. Then, after a brief (but deep) correction in the first months of the pandemic, things continued to climb higher.<\/p>

Those who haven\u2019t experienced a bear market\u2014where stock market indices drop by 20 percent from recent highs\u2014might feel a sense of panic when downturns happen. But the reality is that bear markets occur with some frequency\u2014by one estimate, you\u2019ll experience 14 of them<\/a>[2]<\/sup><\/a> in your lifetime\u2014and the good news is that they tend to be shorter: on average, about 289 days<\/a>[3]<\/sup><\/a>, or just under 10 months.<\/p>

This year, there are several culprits for market volatility\u2014including uncertainty around the pace of interest rate increases, rising inflation, energy-market instability, and continuing supply-chain issues coming out of COVID. Each of the cyclise factors affects companies in different ways, but generally speaking, they eat away at corporate profitability\u2014putting pressure on stock prices. And over time, these economic pressures (especially rising interest rates, used to fight inflation) increase the risk of a recession.<\/p>

So what should an investor do in these turbulent times?<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

1. Focus on Long-Term Investment Horizons<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Sue-May Talbot, a Portfolio Manager and Partner at Genus Capital Management, has seen her fair share of ups and downs. Talbot was Genus\u2019 first hire back in 1989; she\u2019s worked through the fall of the Berlin Wall, the handover of Hong Kong and the Great Recession of 2008-09. Every external event\u2014political, economic or financial\u2014has an impact on portfolios. But Talbot\u2019s advice remains the same: focus on the long-term goal, and don\u2019t get distracted by the day-to-day noise.<\/p>

\u201cThe stock market is one of the best performing asset classes over <\/a>time<\/a>[4]<\/sup><\/a>,\u201d says Talbot. \u201cThere are going to be temporary fluctuations, whether it’s COVID, a war, a tsunami; there’s always going to be something that’s going to cause the markets to go down. But it\u2019s cyclical.\u201d<\/p>

Talbot argues that investors need to have a clear understanding of their time horizon\u2014and build their plans accordingly. While some investors need shorter-term goals\u2014a horizon of two years, for instance, because they\u2019re saving for a home down payment\u2014most can wait for the markets to recover, she adds.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

2. Be Clear on Your Values and Risk Tolerance<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

Talbot says that one of the first conversations she has with clients, in creating an investment plan<\/a>[5]<\/sup><\/a>, is values and risk alignment. \u201cWe need to create a long-term plan to ensure that the portfolio will be able to ride out the volatility in the markets,\u201d she says. \u201cWe say to our clients: \u2018It\u2019s not always going to be a straight upward line\u2014but the trend is still upward.\u2019\u201d<\/p>

Every client has a different tolerance for risk\u2014and Talbot says it\u2019s not just financial risk but emotional risk<\/a>[6]<\/sup><\/a> that needs to be considered. \u201cFinancial risk means you have the financial ability to wait for the markets to recover,\u201d she says. \u201cBut emotional risk\u2014if clients are losing sleep at night, if they’re sick to their stomach when they wake up because markets are down 2% or 3%? Well, maybe we need to make some changes.\u201d \u00a0It\u2019s easy to say you have a high risk tolerance when markets are seeing all-time highs, but the reality is your risk tolerance will be tested during a downturn, and the way you behave at that time is probably a better indicator of your real tolerance.<\/p>

Investors should also know that avoiding investments in certain industries and sectors (such as fossil fuels) may also affect the performance of their portfolios \u2013 whether positively or negatively. As an example, during the height of the pandemic, the price of oil dropped significantly due to low demand, so if you had oil and gas stocks in your portfolio, that would have hurt performance. Now the reverse is true: the price of oil has recently risen due to high demand and low supply. These are temporary fluctuations, and reinforce the importance of a long-term approach to investing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

\n\t\t\t\t
\n\t\t\t\t\t

3. Diversify Your Holdings to Reduce Risk<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

The expression \u201cdon’t put all your eggs in one basket\u201d is especially relevant in 2022. And with all the volatility, it\u2019s practically impossible to avoid a few cracked eggs. But Talbot says you can limit the damage by diversifying asset classes (stocks, bonds, cash), diversifying geographic exposure (North America, Europe, Asia) and diversifying sectoral exposure (financial, technology, consumer goods). You should ideally have exposure to a variety of asset classes that move at different times and speeds.\u00a0<\/p>

Now, more than ever, is the time to be investing in stability. \u201cRight now we’re looking at what we call the \u2018value\u2019 names: companies that do okay even if the economy isn’t doing well,\u201d says Talbot. \u201cWe look at companies that have solid balance sheets and are paying a consistent dividend.\u201d This is particularly important for investors who have immediate income needs, she notes.<\/p>

Ultimately, in a turbulent market, there is no \u201csecret sauce\u201d to investing and remaining unscathed, says Talbot. The only certainty is that \u201cthis too shall pass.\u201d \u201cIf you look at charts throughout history, which show all the bear markets\u2014the markets always<\/em> recover,\u201d says Talbot. \u201cIf you maintain a long-term time horizon, we expect you’ll be okay.\u201d<\/p>

\u00a0<\/p>

Interested in exploring how to build your financial legacy? <\/em>Talk to a Genus Advisor<\/em><\/a> today. <\/em><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

[1]<\/sup> Tretina, K. & Curry, B. (2022, May 6). Bear Market and bull market: What’s the difference?<\/em> Forbes. Retrieved July 5, 2022, from www.forbes.com\/advisor\/investing\/bear-market-vs-bull-market\/#:~:text=The%20average%20bull%20market%20lasts,growth%20of%20more%20than%20400%25.<\/p>

[2]<\/sup> Tretina, K. & & Curry, B. (2022, May 6). Bear Market and bull market: What’s the difference?<\/em> Forbes. Retrieved July 5, 2022, from www.forbes.com\/advisor\/investing\/bear-market-vs-bull-market\/#:~:text=The%20average%20bull%20market%20lasts,growth%20of%20more%20than%20400%25.<\/p>

[3]<\/sup> Tretina, K. & & Curry, B. (2022, May 6). Bear Market and bull market: What’s the difference?<\/em> Forbes. Retrieved July 5, 2022, from www.forbes.com\/advisor\/investing\/bear-market-vs-bull-market\/#:~:text=The%20average%20bull%20market%20lasts,growth%20of%20more%20than%20400%25.<\/p>

[4]<\/sup> Team, T. I. (2022, June 13). Which investments have the highest historical returns?<\/em> Investopedia. Retrieved July 5, 2022, from https:\/\/www.investopedia.com\/ask\/answers\/032415\/which-investments-have-highest-historical-returns.asp<\/p>

[5]<\/sup> How to create your personal investment philosophy<\/em>. Genus. (2021, June 28). Retrieved July 5, 2022, from https:\/\/genuscap.com\/how-to-create-your-personal-investment-philosophy\/<\/p>

[6]<\/sup> How to cope with emotional investing and market volatility<\/em>. Genus. (2021, August 24). Retrieved July 5, 2022, from https:\/\/genuscap.com\/how-to-cope-with-emotional-investing-and-market-volatility\/<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

An Investor\u2019s Guide to Surviving Market Volatility For a younger generation of investors, the past dozen years have been a mostly stress-free experience. After the Great Recession of 2008-09, North American stock markets experienced an unprecedented 11-year bull market\u2014with stock prices rising 400 percent[1] between…<\/p>\n","protected":false},"author":7,"featured_media":23727,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[16,27],"tags":[110],"class_list":["post-23726","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-market-insights","tag-blog"],"acf":[],"yoast_head":"\n3 Ways to Prepare for an Economic Downturn - Genus Capital Management<\/title>\n<meta name=\"description\" content=\"What should an investor do during a recession and market volatility? Here are 3 ways to prepare for an economic downturn.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/genuscap.com\/fr\/3-ways-to-prepare-for-an-economic-downturn\/\" \/>\n<meta property=\"og:locale\" content=\"fr_CA\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"3 Ways to Prepare for an Economic Downturn\" \/>\n<meta property=\"og:description\" content=\"An Investor\u2019s Guide to Surviving Market Volatility For a younger generation of investors, the past dozen years have been a mostly stress-free experience.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/genuscap.com\/fr\/3-ways-to-prepare-for-an-economic-downturn\/\" \/>\n<meta property=\"og:site_name\" content=\"Genus\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/GenusCap\" \/>\n<meta property=\"article:published_time\" content=\"2022-07-05T00:01:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-17T20:38:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/genuscap.com\/wp-content\/uploads\/2022\/07\/GENUS-Featured-Image-Recession-1024x576.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"576\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Crisp\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GenusCapMgt\" \/>\n<meta name=\"twitter:site\" content=\"@GenusCapMgt\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Crisp\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"3 Ways to Prepare for an Economic Downturn - Genus Capital Management","description":"What should an investor do during a recession and market volatility? Here are 3 ways to prepare for an economic downturn.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/genuscap.com\/fr\/3-ways-to-prepare-for-an-economic-downturn\/","og_locale":"fr_CA","og_type":"article","og_title":"3 Ways to Prepare for an Economic Downturn","og_description":"An Investor\u2019s Guide to Surviving Market Volatility For a younger generation of investors, the past dozen years have been a mostly stress-free experience.","og_url":"https:\/\/genuscap.com\/fr\/3-ways-to-prepare-for-an-economic-downturn\/","og_site_name":"Genus","article_publisher":"https:\/\/www.facebook.com\/GenusCap","article_published_time":"2022-07-05T00:01:35+00:00","article_modified_time":"2026-03-17T20:38:21+00:00","og_image":[{"width":1024,"height":576,"url":"https:\/\/genuscap.com\/wp-content\/uploads\/2022\/07\/GENUS-Featured-Image-Recession-1024x576.png","type":"image\/png"}],"author":"Crisp","twitter_card":"summary_large_image","twitter_creator":"@GenusCapMgt","twitter_site":"@GenusCapMgt","twitter_misc":{"Written by":"Crisp","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[]}},"_links":{"self":[{"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/posts\/23726","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/comments?post=23726"}],"version-history":[{"count":0,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/posts\/23726\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/media\/23727"}],"wp:attachment":[{"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/media?parent=23726"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/categories?post=23726"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/genuscap.com\/fr\/wp-json\/wp\/v2\/tags?post=23726"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}