The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics across the investing world.
The ISM Manufacturing Index dropped below 50 for the first time since the last recession. Investors need to prepare for a contraction. In John and David's real-money, 10-Baggers portfolio, they are preparing the portfolio in three ways. First, they have a nice cash cushion to pick up opportunities. Second, they have been slowly accumulating shares of their favorite long-term investment ideas, such as Fusion-io and MAKO Surgical. Lastly, they have been allocating new cash to income-generating, high-quality companies like ExxonMobil and Intel. John and David will continue to look for great companies to add to the portfolio, no matter what the circumstances. Facebook is just one example of the type of company they think is being underestimated by the market.
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