What should I do with the stock I own if I anticipate there will be a recession?
What should I do with the stock I own if I anticipate there will be a recession?
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Runeaway3 · External communityPost link
External question — Personal Finance Stack Exchange
Author: Runeaway3
Original post: https://money.stackexchange.com/questions/112629
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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I want to preface this with saying I am
not
asking if there
will
be a recession because I recognize that this is impossible to answer. I am asking if
I
feel there will be a recession, what should I do with the stock I own?
I recognize this answer might be different for different kind of stocks, so I am specifically asking for mutual funds/ETFs that basically follow the health of the US stock market that I know for certain would be negatively affected by a recession.
I am usually inclined to ignore day-to-day movements of lets say, FXAIX as I don't follow it stringently enough to accurately day trade because I just dollar cost average each month (buying the same value of stock, taking advantage of buying more partial shares if the price drops).
This approach doesn't involve selling really, so I don't normally sell shares. My question is:
is this a bad idea
? If I anticipate a recession, should I sell the stock I have and then wait for everything to bottom out and then resume dollar-cost-averaging? Or should I just proceed as normal?
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