Today is five years since the start of the "Great Recession" - WTVM.com-Columbus, GA News Weather & Sports

Today is five years since the start of the "Great Recession"

COLUMBUS, GA (WTVM) -

While the president is cautiously celebrating the country's current financial position, the people in the business of keeping your investment and retirement money safe are trying to stay ahead of the next economic downturn.

"Five years ago, the crisis was led by a collapse in residential real estate," said Tyler Townsend of Townsend Wealth Management. "It's very unlikely that we would see the same cause again. But, the U.S. does enter a recession about once every seven years. So in a free market society, it's nearly impossible to prevent bubbles. The challenge is, we just don't know what the next bubble will be."

Townsend said the industry that is likely to create the next bubble burst and recession is the one where asset prices are increasing far beyond the underlying asset values. However, Townsend adds that this trend may exist for years before the abrupt collapse occurs, making it nearly impossible to predict the perfect time to sell. 

Rather than jumping in and out of investments with the changing of the seasons, he encourages his clients to take a more moderate approach.

"We believe that investors are best suited to invest in a well-balanced portfolio, and to remain invested throughout the market cycles," said Townsend.

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