Warren Buffett gets gloomy: America’s ‘incredible period’ is already coming to an end. Here’s what nervous investors can do right now

According to the world’s most famous investor, the “incredible period” for the U.S. economy has been coming to an end in recent months. And even his own company, Berkshire Hathaway, isn’t immune.

“The majority of our businesses will report lower earnings this year than last year,” Buffett cautioned at Berkshire’s annual meeting in early May.

That’s a somewhat surprising statement from a man who has famously been ultra-bullish on the U.S. economy.

But persistently high inflation, higher interest rates and the ongoing banking crisis have all made Buffett much more concerned about investment gains in the year ahead. His partner, Charlie Munger, echoed this sentiment. “Get used to making less,” Munger said.

Investors should probably heed the Oracle of Omaha’s warning, but that doesn’t mean completely retreating from the market is the right strategy.

Instead, recession-resistant assets and international stocks could diversify a portfolio enough to withstand those downward forces.

Portfolio shockproofing

Some service sectors are relatively detached from the rest of the economy. Usually, these businesses are backed by a trove of hard, recession-resistant assets that retain their value through inflationary waves.