The economy is showing signs of calamity on the horizon

This past week, interest rates on mortgages broke past the 5% barrier, the highest in almost ten years. The stock market had its biggest two-day drop since the collapse in 2008, and the projected deficit for 2018 was adjusted upward to nearly $1 trillion. Additionally, gas prices are spiking and Ford announced major job cuts. Is this just a short-term adjustment or are we on the verge of an economic meltdown? I think only time will tell, but savvy investors are starting to prepare. My advice is to avoid long-term debt and make sure you have plenty of your assets in highly liquid securities. We are at the tail end of the longest period of growth in U.S. history and whether it’s this year or next, a significant slowdown is coming. You shouldn’t panic, but you don’t want to put yourself in a bad spot. Fortune Magazine had a good article on investing during a recession a couple of months ago. You can see it here.