An ample cash balance and a manageable debt load are obviously preferable, as these qualities afford a company greater flexibility to invest in operations and provide added cushion during periods of economic weakness. (valueline.com)
The monetary authorities of the US and Japan have reiterated that monetary policy will remain accommodative for the foreseeable future as the excess capacity that has built up as a result of the earlier period of economic weakness is seen as limiting inflationary pressures for some time. (rba.gov.au)
But more interesting is the relationship between the two asset classes in the 50/50 portfolio: «First, when a recession is imminent, there is a tendency for bonds to outperform stocks during the initial period of economic weakness (a «flight - to - safety» effect). (moneysense.ca)