The market’s recent bouts of volatility have reminded us that stocks don’t always go up in a straight line.
For those investors in their golden years or pre-retirees, this can be a very sobering thought indeed. Without the long timeline to stomach and recover big drops, retirees are particularly vulnerable to market shocks. Shocks that can make losses permanent when you’re withdrawing funds in order to live.
Luckily, there are a few ways to reduce the volatility of your portfolio. All you need to do is look inside your pantry or medicine cabinet.
Consumer staples have long been a great place for retirees and conservative investors to hide out during a storm and get much needed income. While there are some new risks on the horizon, the sector’s stability should be prized by those investors needing to calm down their portfolios.