2 ms·

Am curious as to what you (and others) think are the better funds (or other areas) to move money to to better weather a recession?

riffic 7y ago
there is a ton of literature on effective investing strategies (equities vs bonds, et cetera). I myself an not qualified to advise you of a particular place to park your money.
AmericanChopper 7y ago
You can’t predict a recession, and you’ll just lose money by trying to. The sane approach to retirement savings is to invest more heavily in higher growth/risk assets the further you are away from retirement. If you don’t need the money for another 30 years, it doesn’t matter if you lose 30% in one year. If you were gaining 10% most years, but have a couple of big downturns during your working lifetime, you’ll still come out well ahead of the person getting 3% every year.
- riffic 7y ago
  recessions are an inevitable component of a business cycle. I can't predict when it will happen, but I can prepare for it to arrive when it surely will.
  - AmericanChopper 7y ago
    Preparing your investment portfolio for a recession means moving your money into lower risk, lower return investments. Trying to prepare for that is trying to time the market, which you can’t do. For retirement specifically, as long as retirement is sufficiently far away for you, then you’ll make the most money by forgetting that recessions even exist, and maximising for long term returns. Go look at pretty much any high growth mutual fund, even if it had a 30% down year in 2008, it’s 20 year returns will almost certainly exceed the returns of any low risk asset.
refurb 7y ago
Rebalancing means holding onto the same funds, but making sure your allocations are correct. You basically sell the winners and buy the losers to get back to your original allocation.
mdorazio 7y ago
I’m rebalancing to include more municipal bonds and less stocks. You can check charts for ETFs going back to 2008 and see which ones are recession resistant.

riffic 7y ago

there is a ton of literature on effective investing strategies (equities vs bonds, et cetera). I myself an not qualified to advise you of a particular place to park your money.

AmericanChopper 7y ago

You can’t predict a recession, and you’ll just lose money by trying to. The sane approach to retirement savings is to invest more heavily in higher growth/risk assets the further you are away from retirement. If you don’t need the money for another 30 years, it doesn’t matter if you lose 30% in one year. If you were gaining 10% most years, but have a couple of big downturns during your working lifetime, you’ll still come out well ahead of the person getting 3% every year.

riffic 7y ago
recessions are an inevitable component of a business cycle. I can't predict when it will happen, but I can prepare for it to arrive when it surely will.
- AmericanChopper 7y ago
  Preparing your investment portfolio for a recession means moving your money into lower risk, lower return investments. Trying to prepare for that is trying to time the market, which you can’t do. For retirement specifically, as long as retirement is sufficiently far away for you, then you’ll make the most money by forgetting that recessions even exist, and maximising for long term returns. Go look at pretty much any high growth mutual fund, even if it had a 30% down year in 2008, it’s 20 year returns will almost certainly exceed the returns of any low risk asset.

refurb 7y ago

Rebalancing means holding onto the same funds, but making sure your allocations are correct. You basically sell the winners and buy the losers to get back to your original allocation.

mdorazio 7y ago

I’m rebalancing to include more municipal bonds and less stocks. You can check charts for ETFs going back to 2008 and see which ones are recession resistant.