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Question of the Week: How Can You Protect Your Investments During a Recession?

The best way to protect your investments during a recession is to avoid drastic changes to your portfolio that are influenced by what markets happen to be doing in the current environment. If you find yourself in a position where you have not clearly articulated your desired outcomes, now is your chance. Rather than rely on a strategy that attempts to outguess the markets, your approach should be goal focused and planning driven. Keep in mind that, despite average intra-year drops of 14.0% over the last 42 years, the SP500’s returns were positive in 32 of the 42 years. We all know market volatility is the emotional price you pay for higher expected returns.

Additionally, here is a list of productive actions you can take when markets are not cooperating:

  1. Rebalance your portfolio
  2. Tax-loss harvest
  3. Consider adjusting your long-term allocation
  4. Take advantage of lower prices by investing more
  5. Make sure you are actually diversified
  6. Make sure you have adequate cash on hand to protect from having to tap your portfolio at a bad time

Marcos A. Segrera helps individuals, families and institutions achieve investment and financial planning goals. He also serves on the firm’s Investment and 401(k) committees. Segrera belongs to the Miami-Dade County Financial Planning Association (FPA) and works as a volunteer with the Parkinson’s Foundation and Legal Services of Greater Miami. Previously, he served as a board member of the YMCA of South Florida, an organization dedicated to building healthy, confident, and secure children, families and communities in South Florida.

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Drew Limsky

Drew Limsky

Editor-in-Chief

BIOGRAPHY

Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.