Is your investment portfolio positioned for expansion or recession?
It’s understandable to worry about the next major market downturn, but recessions come and go and don’t last as long as our memories lead us to think.
The economy has been in a recession roughly 15% of the years since the last world war, and in expansion 85% of the time.
If we spend 85% of our time focusing on events that happen 15% of the time, instead of the other way around, it can lead to terrible investment behavior.
Investing under the assumption that the next recession or downturn is right around the corner means you will always be positioned too defensively.
History has rewarded investors who are willing to remain invested for expansion!