Worried About a Bear Market? Have This One Type of Stock in Your Portfolio Before a 20% Crash.
Dividend Kings have been through all kinds of economic conditions and faced plenty of uncertainty, but they've still managed to boost their dividend payouts for 50 or more consecutive years.
Overview
As U.S. consumer confidence weakens, some may worry that a bear market could emerge, in which a major index like the S&P 500 would fall 20% or more from its recent highs. According to a report from the nonprofit think tank The Conference Board, U.S. consumer confidence in August fell to its lowest level since January.
That isn't a guarantee that a bear market will form. But as U.S. debt levels sit at $40 trillion, worries about rising living costs increase, and inflation remains stubborn, many are considering how best to prepare for a correction that could eventually turn into a bear market.
Details
While the best course of action for a portfolio varies by investor, there is still one class of stocks that may bend but won't break during a bear market.
Source
Originally published at www.fool.com.