If you believe the economy is about to go into a recession, you might change your asset allocation by selling ________ and buying ________.
A) growth stocks; long-term bonds
B) long-term bonds; growth stocks
C) defensive stocks; growth stocks
D) defensive stocks; long-term bonds

Question

Quizplus · Accepted Answer

During economic downturns or recessions, investors often move away from growth stocks, which are more volatile and sensitive to market changes, towards more stable investments like long-term bonds, which tend to offer safer returns during such times.

If You Believe the Economy Is About to Go into a Recession