Since the Great Recession enveloped the global economy back in 2008-09 related to a crisis with sub-prime mortgages, there has not been any real indication of a similar crippling economic downturn returning for over a decade now. But that doesn't mean a recession couldn't return.
And while no one should expect to invest with the looming fear of an impending recession, it's always good to position your portfolio to be ready for one. The key is not to over-prepare, but instead to ensure the portfolio is continually reviewed and positioned in case of unforeseen circumstances. Investors can view these practices as a form of insurance for their portfolios.
Here are three effective ways to prepare your investment portfolio for a recession.