A. The truth is, no one could accurately predict the timing of the next recession. The late Nobel Prize winner Paul Samuelson once said - the markets have predicted nine of the last five recessions!
But we do know if a recession hits, stocks' performance will suffer. But you don't want to park all your money in a saving or CD account earning nearly nothing. The best thing a small investor could do, when prepare for the coming recession is the 3-step investment strategy we advocated here.
Specifically, here are the 3 steps:
Step 1. Develop a diversified portfolio that fits your investment style and time horizon.
Step 2. Use dollar cost averaging and keep investing in the market, even when recession hits.
Step 3. Periodically rebalance your portfolio.