Part 8/9:
During tough economic times, certain sectors tend to be more resilient. Defensive industries such as healthcare, infrastructure, and transportation often continue to perform well regardless of economic conditions. In contrast, growth-oriented sectors like consumer discretionary and technology may experience more volatility and inflated valuations, making them riskier bets during a recession.
Maintaining a balanced portfolio with 20-30% in cash provides flexibility and leverage to buy undervalued assets when opportunities arise. Diversification across sectors helps mitigate risks and positions you for potential growth once the economy recovers.