Recession Proofing Portfolio
Just wanted to get peoples opinions/ideas on recession proofing your investment portfolio. As the yield curve has inverted, a recession may be coming in the next few months to a couple years. I am trying to be more cautious and attempting to “recession proof” my portfolio the best that I can. For references, I am currently 85% in stocks and 15% cash.
Scenario 1: I’ve been told that owning 10 year US treasury bonds typically do not decline as much as stocks in a recession. Would it be wise to allocate a portion of your portfolio (say 25%-30%) into treasury bonds/treasury bond ETF’s to offset the inevitable decline in prices?
Scenario 2: Sell some of the more riskier stocks in your portfolio to bump portfolio cash (bump that up to 50% or so) and slowly buy stocks of high quality companies (good balance sheet, high cash flow, low debt) as the prices of stocks continue to decline. For example, stocks in consumer staples typically also do well in recessions as households do not cut out these goods out of their budget.
Scenario 3: I do not own any gold in my current portfolio but understand that owning gold in a recession is typically favoured?
Would love to hear your opinions/ideas. Thanks in advance guys!
Scenario 1: I’ve been told that owning 10 year US treasury bonds typically do not decline as much as stocks in a recession. Would it be wise to allocate a portion of your portfolio (say 25%-30%) into treasury bonds/treasury bond ETF’s to offset the inevitable decline in prices?
Scenario 2: Sell some of the more riskier stocks in your portfolio to bump portfolio cash (bump that up to 50% or so) and slowly buy stocks of high quality companies (good balance sheet, high cash flow, low debt) as the prices of stocks continue to decline. For example, stocks in consumer staples typically also do well in recessions as households do not cut out these goods out of their budget.
Scenario 3: I do not own any gold in my current portfolio but understand that owning gold in a recession is typically favoured?
Would love to hear your opinions/ideas. Thanks in advance guys!