The forward looking indicators indicate recession, the backwards looking indicators indicate recession, and the general pattern of the yield curve suggests a downturn within ~20 months.
Question is; what's a normal personal investor to do? Knowing that expectations are baked into the price and timing the market is a fools errand, what can normal people do to shield themselves?
I've been 90/10 asset allocation since entering the workforce (2013) and it's been amazing for me. I obviously plan to continue to contribute to my funds but at what point would a rebalance or choosing a different fund be wise? A majority of my fund holdings are in tech, healthcare and banking/finance.
That depends on your risk profile. Are you going to freak out if your portfolio loses 30% of its value in a year? Then maybe move to a more balanced portfolio. If you are happy to wait and let things turn around again, then stay the course. Timing the market is generally not recommended because the people that do this every day have a much better grasp on what is going on than the public in general and they will have already responded en-masse before you can, so at best you are hoping to get lucky.
The balanced portfolio is a 60/40 stock/fixed income (government bonds, etc) split. If you're running hot (a 90/10 balance seems quite toasty) then perhaps you could consider pulling back to a more moderate position until you feel we're approaching the bottom, and then return to your aggressive split.
Question is; what's a normal personal investor to do? Knowing that expectations are baked into the price and timing the market is a fools errand, what can normal people do to shield themselves?
I've been 90/10 asset allocation since entering the workforce (2013) and it's been amazing for me. I obviously plan to continue to contribute to my funds but at what point would a rebalance or choosing a different fund be wise? A majority of my fund holdings are in tech, healthcare and banking/finance.