How should I change my investment strategy if a recession comes?

Recessions might be more common than you think. In the United States, a recession has happened, on average, once every six and a half years since the end of World War II. If you think a recession might be coming, and you’re asking yourself, should I change how I’m investing for retirement? here’s some information to consider:

People who try to “time the market” – actively buy stocks when prices are low and sell them when prices are high – tend to end up with less in the long term, compared to people who invest in a passive, long-term way. Why? Because getting the timing just right is really hard.

CNBC compares returns for two hypothetical people who each invest 10,000 in the S&P 500 index, beginning in January 2005. The first investor doesn’t do anything else. By the end of 2024, they have $71,750. The second investor jumps in and out of the market and ends up missing the 10 best market days. They end up with $32,871.*

Instead of trying to beat the market, consider sticking with a steady, long-term plan.

If you’re still feeling uneasy, consult a professional. Just Futures clients can sign up for a one-on-one appointment. If your employer has a different retirement plan provider, ask your human resources contact how you might consult with an advisor from that provider. Or, if you invest through an IRA, contact your account provider. Navigating financial questions can be a lot easier when you work with a trustworthy guide.

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If you don’t have a retirement investing account, or if your employer contracts with a different retirement plan provider, we’d love to show you Just Futures’ services! Contact us: info@justfutures.com.

~Lisa, Manager of Coalitions and Worker Power

*This example is hypothetical. It demonstrates a mathematical principle. It does not illustrate any investment products and does not show past or future performance of any specific investment.

This material is for general information and educational purposes only. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. Nothing contained herein is to be considered a solicitation, research material, an investment recommendation or advice of any kind.

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Published April 29, 2025