Prediction: If a Recession Is Coming, This ETF Will Be the Smartest Investment Right Now
Staying consistent in the broader market has typically worked in investors' favor.
Overview
According to prediction platform Polymarket, the chances of the U.S. experiencing a recession before the end of this year or the end of 2027 are 8% and 34%, respectively (as of Aug. 25). Only time will tell how it plays out, but one thing remains true: It's always better to be overprepared than underprepared.
Recessions are a natural part of the economic cycle, so it's never too early for investors to position their portfolios accordingly. One of the best investments to own while approaching or during a recession is the Vanguard Morningstar Total Stock Market ETF (NYSEMKT: VTI). It lets you invest in the entire U.S. stock market with a single investment, covering a lot of ground.
Details
VTI holds 3,515 stocks covering small-cap, mid-cap, and large-cap, so it's as close to a one-stop shop as you'll find (minus international stocks). Being broad works in VTI's favor during recessions because it reduces reliance on a single industry or market-cap segment.
Source
Originally published at www.fool.com.