A question came up during the Student Investment Fund meeting this week: are we going to take some defensive position given the upcoming recession? At the meeting I showed how we are in a little better shape relative to our benchmark, the S&P 500, in terms of PE ratio, dividend yield, debt ratios, etc. However, the recession warning signs are increasing in number and magnitude. Perhaps we need to take other action such as protective puts. Another idea would be to “stay the course” but perhaps focus even more on value firms with a history of growing dividends. Or purchase high quality bonds in lieu of stocks this semester.
Hopefully the market holds up while we contemplate our strategy -or- our past picks prove resilient.
Guggenheim Says Chance of Recession in 24 Months Has Doubled