Part 7/8:
Usually, the stock market begins to decline in the months preceding a recession, as observed in recessions dating back to 1929, 1980, and 2007. Given the proximity of a potential recession, many investors adopt a bearish outlook.
However, historical trends indicate that the stock market can continue to rise until just before the onset of a recession. As exemplified in 1990 and 1929, stock market peaks can occur just before significant downturns.
To navigate this complex landscape, investors are advised to maintain flexibility in their equity strategies. Embracing flexibility allows investors to manage risks wisely while remaining alert to potential economic shifts, rather than fixating solely on immediate data forecasts.