Take $2,000 and Protect Your Portfolio With These 3 Stocks
2020 has reminded investors that the stock market is risky. After a more than decade-long bull market, the COVID-19 pandemic sent stocks plunging 30% in just a month, rattling investors who'd forgotten just how volatile their portfolios can be.
The subsequent recovery, though, also served as a reminder. Although short-term price movements won't reflect long-term prospects, strong companies recover in time. Some of the best performers have been high-growth upstarts in the technology industry that have proven their value to the business world during coronavirus-related shutdowns. Investors who put their money into those companies -- think Zoom Video Communications, for example -- have seen amazing returns.
If you have an extremely long time horizon and can weather the inevitable ups and downs involved with growth stock investing, then keeping the bulk of your portfolio in those high-flyers can be a solid strategy. But if you're feeling nervous about being too far out on a limb, then you might prefer adding some reliable go-to stocks to give yourself some valuable diversification. To protect your portfolio, consider taking $2,000 and putting it into these three stocks before the next market crash.
Source Fool.com
