3 Investing Strategies to Survive a Stock Market Bubble
You've seen the speculation: Some analysts are worried that the stock market might be in a bubble. Does that mean it's time to panic? In a word, no. It's impossible to determine definitively if the market is in a bubble, or if said bubble will pop. That's why your strategy today should be appropriate whether the market crashes next week or continues to show gains. If you're truly worried about future volatility, try these three investing strategies that will serve both ends.
Dive into your holdings and assess your risk level. You may have risk associated with individual assets or with the composition of your portfolio. With respect to specific assets, smaller, less experienced companies are generally riskier than middle market companies, which are riskier than large caps. In the fixed income space, U.S. Treasuries are the safest, followed by municipal bonds and then corporate bonds. Shifting some of your wealth from, say, a small cap fund into a large-cap dividend fund can add stability ahead of turbulent times.
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Source Fool.com
