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I didn't vote because my retirement income comes from funds I have little control over (a Trust, but very similar to if you were the beneficiary of a privately managed pension.)

The "correct" answer to your question(s) is, of course, a matter of opinion! The textbook answer would be to stay the course with your desired allocation (say 60/40 stocks, bonds) ... recession or not. Active trading either is [or isn't] a waste of time and money, depending on whom you believe.

I don't know if I could actually do so, but if I did have control, is I would maintain more hedge positions than the "textbook" asset allocation. For example, I would maintain small positions in gold and/or other "hard money" assets, maybe 5-10% of total. I've also been dubious of much of the debt floating around. I would keep most of my funds in pure U.S. Government assets, maybe some Euro bonds too. Let others fight over CDO's, Alt-A, or whatever the latest crap is. I pay taxes, so I'm going to take a hit when Uncle Sugar bails SOME of this garbage out, but at least my own portfolio wouldn't take a major potential hit.

In practice, I keep the bulk of my own money in inflation or disaster hedges -- gold coins in the safe deposit, and a paid-for house (seemed a good investment -- until recently!!!) So, in effect, I am hedging the "normal" stock, bond mix ...
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