There are no set solutions. You have to change continuously you portfolio to reflect the conditions of the business cycle. The business cycle changes. You have to change your portfolio accordingly.
When the economy strengthens, you buy assets that typically appreciate in value during a strong economy. Usually they are commodity sensitive assets.
When the business cycle slows down, your portfolio should become more conservative and emphasize income producing assets.
When the business cycle strengthens again, you switch back to strong growth sensitive assets.
One more thought. Changes in the structure of your portfolio should take place slowly and gradually.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
2009 Market Timer of the Year by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
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