If a Stock Market Crash Is Coming, History Says This ETF Could Be the Smartest Buy for Investors
Don't necessarily switch to cash. Switch to quality instead.
Overview
Is another stock market crash coming? Probably. Eventually. Maybe?
The correct answer is that nobody knows. As tempting as it might be to try to predict the next crash and sell all of your stocks before it happens, the odds of being successful in doing that are very low. Sure, you may pull it off. But there's a higher likelihood that you'll miss out on further stock price gains while you wait.
Details
There have been 27 bear markets in the S&P 500 (SNPINDEX: ^GSPC), defined as a loss of 20% or more, since 1928. So it's safe to say that No. 28 will be on the way at some point. But instead of moving to cash, the better option might be to buy an ETF full of high-quality companies and continue adding even if the market pulls back.
Source
Originally published at www.fool.com.