...When recession hits, working adults with high equity exposure and a mortgage leave themselves totally vulnerable to a tanking economy & markets
Fact is: losing a job and losing lots in shares and forced into selling at the worst time to finance the mortgage is something you need to prepare for (even if it hasn't happened*)
* If It Hasn't Happened, It Does Not Mean It Won't.
...I recall during the GFC, Westpac was in so dire need of cash that they offered 8% pa return for 5 year TDs which was a higher rate than the loan rate.
...Cash is King during a recession.
Too many people today have forgotten or never knew what a real recession is like. They think the pandemic was typical when in fact it was the outlier in U.S. history for its brevity.
So as the economy implodes, they pray for rate cuts.
