Survey: Americans Aren't Financially Prepared For A Recession

The U.S. stock market has been on shaky ground in recent weeks after a yield curve inversion and a new round of tariff threats between the U.S. and China has investors spooked about the possibility of a U.S. recession. Unfortunately, a new survey by LendEDU suggests Americans are woefully underprepared for the prospect of an imminent recession.

Americans Underprepared

LendEDU found that 55.2% of survey respondents have $1,000 or less in savings, with the average amount at $9,585. In fact, 32% of Americans reported having no savings at all.

Despite the number of people that have little or no money set aside to help them manage a potential pay cut or job loss, only 42% said they are planning to spend less and save more in preparation for a potential economic slowdown.

When it comes to investing, 44% said they are planning to move forward with their current investing strategy despite the possibility of a recession. Only 16.1% of respondents said they are planning on investing more conservatively, while 3.8% said they are planning on investing more aggressively.

Perhaps most troubling, only 40.4% of respondents said their personal finances are currently strong enough to handle a recession.

Recession Stock Picks

For investors looking to prepare their portfolio for a potential economic downturn but are unsure which stocks to buy, CNBC recently listed several stocks that Wall Street analysts are recommending in light of recession concerns.

Here are several of their top recession stock picks:

• Matson Inc MATX
• Planet Fitness Inc PLNT
• TJX Companies Inc TJX
• National Vision Holdings Inc EYE
• AquaVenture Holdings Ltd WAAS

At the same time, CNN recently reported that company insiders are actually selling shares of stock at their highest levels since 2007. Corporate insiders have sold an average of $600 million in stock per day in the month of August, suggesting executives and institutional investors may be losing confidence in stocks all together due to recession concerns.

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