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Stock Investors: How to Prepare for a Recession in 2019

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  • (0:30) - Will There Be A Recession?
  • (3:45) - What Warnings Signs Will We See?
  • (14:30) - Have Buy Backs And Tax Cuts Postponed The Recession?
  • (20:35) - How Should You Be Preparing For 2019?
  • (26:50) - Tracey and John's Stocks To Watch
  • (34:40) - Is Bitcoin A Dying Investment?
  • (40:30) - Are The FANG Stocks Where You Still Want To Be?
  • (43:15) - Episode Roundup: FB, AAPL, AMZN, NFLX, GOOGL, QCOM, CC, JPM, MU
  •                 Podcast@Zacks.com

Welcome to Episode #160 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Chief Equity Strategist John Blank to discuss the outlook for 2019.

In past episodes, the two have discussed whether or not a recession was coming in the following year. Starting in 2016, there were many predictions of an impending recession, none of which have panned out.

Remember, the technical definition of a recession is two or more quarters in a row of negative GDP growth.

Will 2019 finally be the year that a recession happens?

And if so, what do you want to be invested in?

From Reflation to Financial Deflation

Since the Great Recession, the world’s central banks have gone to great pains to reflate the global economy but we could be approaching an era of deflation, as the banks withdraw their support.

What stocks do you want to be in when borrowing becomes more expensive?

The high growth stocks that often don’t have earnings might not be the place.

Look for blue chips with share buyback programs, dividends and solid cash flows like Micron (MU - Free Report) and Qualcomm (QCOM - Free Report) .

What about FAANG?

Some of the FAANG stocks pay a dividend and are doing share buybacks like Apple (AAPL - Free Report) but others like Amazon (AMZN - Free Report) aren’t doing either and still have big spending budgets.

Other growth names are also devoid of shareholder friendly programs such as Twitter .

Will value return to the spotlight as investors seek out security and fundamentals?

Is growth’s dominance coming to an end?

Find out the answer to all of these questions and more on this week’s final 2018 podcast.  

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