During the global financial crisis of 2007/8, the assessed value of my home starting dropping. Two years later, it had dropped 29%. Did I cry? Did I sell my home? Did I curse my realtor? Of course not! I just waited for it to recover.
The S&P 500 has now dropped 11% and is still dropping. This year will probably be the first losing year since 2008. Should I cry? Should I sell out? Should I curse my advisor? Of course not! Just wait for it to recover.
How many 10% corrections and how many 20% bear markets have you already seen? They come and they go.
If you fear recessions, consider doing nothing or raising another 10% of cash at most. Very few people can predict the tops and bottoms. I have no fear of normal recessions or even bear markets.
However, if you fear another financial crisis, as I do, consider raising cash to 50% . . . at some point. The trick is to do it suddenly, when you become convinced this is not an ordinary recession but not before. So, how will you know?