How Gen Z can beat the recession blues

Zoomers, stay warned: Winter is coming - literally and figuratively. As we prepare to freeze in the wintry cold, 2023 is cooking up a storm to ensure our investments are knocked out ice-cold, thanks to a frosty cocktail of sustained recession in the West, a resurgent COVID and surging living costs. As a result, a staggering 77 per cent of fund managers are bracing for a global recession next year, as per a Bank of America survey -- the highest since COVID came knocking in 2020. And since a lot of you have been in the market for a couple of years and have never faced the market's wintry pessimism, we remind you of certain home truths and how to overcome them. 1. Volatility and markets go hand in hand Bear markets are inevitable, and it's no different this time. So, don't get freaked out by a falling market because even though they are yo-yo in nature, they eventually go up in the long run. 2. Markets owe you NOTHING Sounds harsh, but it is what it is. Set your expectations right. This is where your temperament will come into play; this is what will separate the wheat from the chaff. 3. Living is the real thing You may be bored to death reading markets are volatile but living through that experience is a different ball game altogether - something that is aptly explained by Morgan Housel, the author of the highly recommended The Psycho

This article was originally published on December 30, 2022.