| Inflation is pinching everyone's budgets. Several banks have failed, and there is concern that more will follow. Plus, the debt ceiling is a big wild card. If the president, House and Senate can't get together on a deal and the government shuts down as a result, there will be some real economic pain inflicted on the American people. Despite the Federal Reserve lifting rates, the bond market is not following. Ten-year Treasurys still yield around 3.5%, signaling that rates should fall. And the futures market predicts a 70% chance of a Fed rate cut in September. Energy prices have come down in recent weeks - another sign of weaker economic output. And, of course, the news that comes out on a daily basis with random (and not random) acts of violence, ineptitude in Washington and geopolitical concerns do nothing to instill confidence. How to Prepare So how should you play it? For your safe and short-term funds, there are few better deals than Treasury bills right now. If you're concerned about a U.S. debt default, you can always buy a certificate of deposit instead. If you have money to put to work in the stock market, don't wait. It may feel like it's not the right time, but that was the case in early 2009 when the economy was still a mess. And yet that was precisely the right time to invest. Furthermore, you can't time the market. By the time you and others believe we have the all-clear signal, the market will be much higher than it is now. Again, the market looks forward. So if the economy is better, the market will have already moved. I particularly like the energy sector and metals. If we avoid a recession, those sectors and others should do well. And because the energy sector has fallen over the past few weeks, there are a lot of cheap energy stocks. In fact, if you're looking for some exposure to the energy markets, then you should check out my #1 pick for 2023. It's - without a doubt - the most promising oil and gas opportunity I've ever seen. And it'll help you bring in more monthly income. (Click here for all the details.) I think regional banks are also interesting and are perhaps offering the buying opportunity of a lifetime. Their prices have gotten smashed, and there are quality banks that are paying yields over 7%. This is obviously a volatile sector right now, so if you put money to work in the regional banks, you need to be prepared for a wild ride. But I expect investors to be well rewarded over the long term. Lastly, remember the best time to buy a stock is when it feels uncomfortable. That means you're probably getting a great price because so many others have sold it. What are your thoughts? Are we going to see a recession soon? Let me know in the comments. Good investing, Marc | 
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