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      01-17-2020, 03:28 PM   #3
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Location: Toronto, ON

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I work for a global investment manager and going cash is a safe option but you do need to factor in inflation and opportunity cost. It really comes down to what your time horizon is (i.e. time to retirement) and if you could stomach some volatility.

Currently, retail investors like you and me have access to alternative investment strategies, some of which, in short, can give you positive returns when the market goes down. They are known as liquid alts in the form of long/short, market neutral, anti-beta strategies that can hedge a portion of your portfolio.

There are some great balanced products (75 fixed income/25 equity) that have not taken a massive hit during the '08 correction. I have come across mandates that were down by only 5-7% during the recession and rebounded back in '09.

Do not forget that usually the markets tend to rally strong before a recession and missing the best years over 20-30 yr investing period, it can create a significant difference in absolute returns. In terms of a recession, word is that we should expect to see volatility over 2020 and potentially have a market reset in Q3/Q4 of 2021.

Just my 2-3 cents..