4 ms·

Assuming there's a recession coming what is a good investment strategy?

• Nzen 8y ago
  I am an undereducated stranger who hasn't grown a nest egg into millions. I think I've heard the advice of people who have, albiet not reproducibly. +<I only practice once a year, unlike Warren Buffett who has employees who think on this full time all year.> Consider treating what I say, on this NP-Hard problem, as naive misinformation. It ultimately depends on your time scale and tolerance for paper money variation. I've heard buy low, sell high is good; and, I have twenty or more years to move things around. So, when I notice a recession, I increase my proportion of stocks, on the assumption that they are undervalued. If I were to notice a bubble (unlikely) I would increase my proportion of government backed bonds, to wait until the next recession. If I were retirement age, and needed to reify that paper into real money, I'd probably divest stocks in favor of government bonds that hold value during the downturn. "Government", on the assumption that they are less likely to default than corporate backed bonds.