It is generally advisable to be cautious and diversify your investments during a recession. While it is natural to want to protect your assets and minimize risk during uncertain economic times, it is also important to remember that recessions are typically temporary and that markets can recover over time.
One strategy that you may consider during a recession is to allocate a portion of your portfolio to assets that are considered “defensive,” such as government bonds, high-quality corporate bonds, and cash. These assets may be less volatile and may offer some protection during market downturns. It is also a good idea to diversify your investments across different asset classes, such as stocks, bonds, real estate, and commodities, to reduce the overall risk in your portfolio.
In terms of where to invest, it is important to carefully research the market and consider factors such as the potential risks and returns of different assets, as well as your investment goals and risk tolerance. It may also be helpful to seek the advice of a financial professional, such as a financial advisor or wealth manager, to help you make informed investment decisions.
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