Investors Shift to 0.03% S&P 500 Funds as Bear Market Risk Builds
Updated
Updated · The Motley Fool · Aug 23
Investors Shift to 0.03% S&P 500 Funds as Bear Market Risk Builds
2 articles · Updated · The Motley Fool · Aug 23
Summary
Low-cost S&P 500 index funds are framed as the simplest bear-market preparation, with investors urged to keep buying through any selloff rather than trying to time it.
Dollar-cost averaging underpins that approach because falling prices let investors accumulate more shares cheaply, while market history suggests bear markets are eventually followed by new highs.
Individual-stock holders are also advised to cut risk by trimming concentrated positions such as Nvidia and rotating into steadier dividend payers like Procter & Gamble or Black Hills.
More than 50 straight annual dividend increases at those companies are cited as evidence that reliable consumer-staples and utility businesses can better withstand downturns and keep cash flowing.