A. The U.S. and most of the world's economies are in recession. You should consider the following:
- Uncertainty and volatility are likely to remain high—a more cautious near-term portfolio tilt, without any significant asset class tilt, may be warranted.
- More defensive assets such as high-quality bonds and non-cyclical equity sectors tend to do better during economic contractions.
- The end of the business cycle, the recession phase, often provides investment opportunities for long-term investors.