Smart investors can always set a small amount of money in their investment portfolio primarily poised to take advantage of dips in the market. For most of them, they will always try to hold cash about 20% to 30% of their total investment portfolio to take opportunities when there is pullback in the market.
When a recession strikes, the asset prices such as shares market, property will fall. Normally, ordinary investor who perceive that as high risk in doing something with their cash will potentially won’t earn the modest return. The reason is they feel fearful to take the challenge and have negative thinking when market downturn.