If a Bear Market Is Coming, History Says These Are the Only ETFs You Need
They both check many boxes that investors would want during a market downturn.
The prospect of a bear market, while not commonly met with enthusiasm, is an inherent aspect of the stock market cycle. Accepting this reality and preparing in advance can lead to valuable opportunities, such as acquiring quality stocks at reduced prices. While it's impossible to predict the exact timing of the next bear market, recent market performance has raised concerns.
The S&P 500 has surged nearly 100% since the beginning of 2023, marking a rare occurrence over such a short timeframe. Consequently, investors are increasingly questioning the possibility of an impending bear market. To mitigate potential losses during such an event, it's advisable to have specific holdings in one's portfolio. The Vanguard S&P 500 ETF (VOO) and the Schwab U.S. Dividend Equity ETF (SCHD) are two ETFs that could prove beneficial during a bear market.
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