#38 - On Investing in a Recession
Greetings!
This Monday on my new podcast, Your Money Guide on the Side, I sit down with the brilliant Jessica Inskip—a former Fidelity and Merrill pro who left Wall Street to teach finance the right way. You can listen to the episode (or past episodes) here. Thank you to all who have reviewed the podcast so far or offered me feedback, as every review and piece of direct feedback helps makes the show better for you!
Jessica shares her powerful journey from nearly becoming an engineer to becoming one of the most trusted voices in financial education, breaking down complex strategies on CNBC, Fox, and alongside Jim Cramer—and now, educating millions on TikTok and her #1 personal finance podcast, Market MakeHer.
We dive into:
🧠 Why she gave up her licenses to battle misinformation
📉 The emotional cost of leaving the traditional finance world
📱 How she built a trusted brand on authenticity, not algorithms
🎧 Her process for making macro + market trends actually make sense
Jessica’s not here to go viral—she’s here to create real impact. And in this episode, she shows us exactly what that looks like.
And now to address this dang market volatility we all know and don’t love!
If you’re feeling uneasy about where the market’s heading, you’re not alone. Volatility has picked up, economic data is mixed, and recession headlines are everywhere. As always, remember that negative headlines sell. When things get shaky, the natural reaction is to pull back, get defensive, and wait for the “right time” to jump back in.
And even though my personal investing never changes based on external market conditions, I do find it interesting to “think” about what sectors and investments tend to “outperform” during market pullbacks, so below is a sample $1 million portfolio breakdown if I were to invest it for someone who wanted to a) try to time the market, and b) remain relatively risk “off” throughout periods of high volatility.
A Recession-Ready $1 Million Portfolio
$250,000 – Short-Term Treasuries & Cash Equivalents (25%)
Goal: Liquidity + optionality
Why: Gives you dry powder if markets drop, while earning 4-5% in short-term T-bills (SGOV or TreasuryDirect).
$300,000 – Defensive Equities (30%)
Goal: Stay invested in recession-resistant sectors
Why: People keep buying groceries, using electricity, and seeing the doctor—even in downturns.
Sectors to consider: Consumer Staples, Health Care, Utilities
$150,000 – Income-Producing REITs & Dividend Stocks (15%)
Goal: Steady cash flow
Why: REITs and dividend-focused ETFs tend to continue to pay out even when growth slows.
$200,000 – Bonds (20%)
Goal: Stability + diversification
Why: Bonds typically hold up well in recessions and provide a buffer against equity volatility.
$100,000 – Tactical Growth Exposure (10%)
Goal: Participate if the market rebounds sooner than expected
Why: You don’t want to be entirely on the sidelines if a recovery begins. This is where light timing comes in—invest in high-quality growth with the ability to scale in or out.
This type of portfolio allows you to:
Stay invested in quality sectors and income-producing assets
Keep nearly half in ultra-liquid and lower-risk positions
Maintain enough upside exposure to benefit if markets rebound
Adjust gradually rather than making emotional, all-or-nothing moves
Again, this is not how I invest, and I do not recommend any of the above, as I believe in long term buy and hold approaches to investing and simply spending time “in” the market. But, I also believe in education, and I hope this allocation consideration proves somewhat thought-provoking as you navigate your own investing trajectory over the weeks, months, and years ahead.
Have a great week,
Tyler
