Comments by "Magic Beans" (@Magic_beans_) on "Investing During Recessions - How Should Investors Prepare?" video.

If you’re that worried about a correction or a bear market, that’s probably a sign your overall allocation is too aggressive. Build up more of an emergency fund or move some of your investments to bonds or commodities full-time. Sure your upswings won’t be as big, but you’ll have the resources to ride out a downturn. Waiting comes at a cost too. According to research by Elm Partners, even when starting from an expensive market, the odds of correctly predicting a correction within the next 3 years are a little better than a coin flip (56%). When the predictor is correct they save themselves about 10% of losses, but when they’re wrong they miss out on the gains the market made during that time, an average of 30%. That means on average waiting for the dip means 8% missed gains.
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