There is hardly a doubt there is a bear coming. I have been getting ready for a few months now. I took out about 16K out of the S&P 500 cause it is so off balance towards tech stocks. Today I put a bunch of it in utilities, ( WEC & FUTY) FUTY is Fidelity utilities ETF. I have been buying food, like Kellogs, General Mills, Archer Daniel Midland and Smuckers Jelly. We will eat and heat our homes . Today I also bought a more conservative high yield ETF ( SPYD). It has a lot of real estate , energy and banks. I figure we will eat, heat our homes and need a place to eat and go to the bank. I almost always loose about half of what the market does on real bad days and corrections. The bear last year was every bit as bad for " conservative stocks as the tech stocks, but that was a first for me.
What do I do with 401k stocks? There are only around 30 different mutual funds/portfolios I have to play with.
Fiddy, tha is a problem in the 401K's . My wife has the same problem but we found a few funds we felt were better. I need a list to tell you but I can say the madcap value funds are lagging the S&P 500 fund by quite a margin. The more conservative large cap value funds are way behind the growth funds too. However, they are quite high also, but they just got back up to the pre covid crash. I would still put some in bonds, but not much and a lot depends on what kind of bonds are available. I have a bond that will likely go up if interest rates rise. The ticker is PONAX. The reason is cause they are overweight in mortgages . When rates do go up, there will be more profit in those securities. This fund pays about 3.5% in dividends and pays monthly. I know, 3.5% is not much and the fund is almost as high as it was 2 yrs ago, however the fund does not move up or down much. Fiddy, what are the fund choices and it wont take long to tell the better ones for a market that just cant have prices like this for tech stocks. They are way over priced.
