Stock market crashes and big economic recessions can be caused by a variety of factors. The real concern are the factors that seem to come out of nowhere; the ones that catch everyone, even the experts, off guard.
Take all this talk by the media predicting an economic downturn with a grain of salt. It’s next to impossible to predict events such as the Great Depression or the Great Recession of 2008-2009. Up until 2008, had you ever heard of a Mortgage Backed Security?
Bottom line: Your portfolio should be ready for anything at any point in time.