Where to Hole Up When the Next Recession Hits

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Shake a finance show or an economics department and you'll find somebody dolefully predicting a recession on its way. The next big one is expected to hit by the end of 2020, if not sooner, but it's not a precise science by any stretch. Still, there are better places than others to weather a recession, and one group of analysts think they've ranked them by state.

Fit Small Business is a product reviews website for small business owners; its editors recently repeated an analysis they carried out in 2017 of "the best states to survive a recession in," given all the dire warnings out there. This isn't quite as random-on-the-internet as it may appear: "To determine which states are the most recession-proof in this revised study, we considered a wealth of data, including product exports, housing costs, individual debt averages, average deposits per capita, and trade," the editors write.

And they got some answers. No. 1 on their list is Texas, with its affordable housing, low unemployment rate, and low state income taxes, not to mention "a history of faring well through recessions." Other surprisingly robust locations? West Virginia, Nebraska, and Indiana. The key, according to FSB, is ensuring that a state's economy is well and truly diversified. Check the full list to see how your state ranks.

Recessions can knock you down for decades to come in earnings and savings potential, but there are ways to insulate yourself without getting too weird about it. That said, if you're worried about surviving total economic collapse, fret not — we've got some advice on that too.