History Says This Is the Single Best Strategy for Investors if a Market Crash Is Imminent
This group of stocks tends to hold up well in downturns and keep up with the market during upswings.
Overview
This has been another fantastic year for stock investors so far. Despite some headwinds, investors have bought into multiple pullbacks in stock prices, pushing the S&P 500 and Dow Jones Industrial Average to new all-time highs as of this writing. The tech-heavy Nasdaq Composite trades within 3% of its high.
But that relative weakness in the Nasdaq over the last few weeks has some investors worried about the broader market. The bull market has been driven by artificial intelligence, and it's possible a collapse in AI spending could be its undoing. Combined with uncertainty about the war in Iran, President Donald Trump's tariff policies, and the Federal Reserve's monetary policy, some see cracks forming.
Details
The good news is there's a simple strategy that can protect your portfolio if you think a market crash is imminent. Importantly, it won't require giving up the potential upside of stocks if the bull market continues to march forward.
Source
Originally published at www.fool.com.