In this environment, it might be good to have some stability in our portfolios. After all, volatility has started to rise and the chance of a recession has only increased.
It’s getting dicey out there. And the recent swoons in the market have reinforced the fact that stocks don’t always just go straight up. The question remains, however, how do you get that stability?
Bonds might not be the answer as rising rates could crimp their ability to protect a portfolio. At the same time, fleeing to cash has some problems as well. After accounting for inflation, cash is still losing purchasing power. Where should investors get that stability?
How about an old 401k staple that’s now getting a second chance at life? Stable value funds have made a big comeback in recent years. And there’s good reason why. They might just be what some conservative investors are looking for.
For more investment concepts, visit our Dividend Investing Ideas Center.