- Cash. There is zero short term volatility for cash. Of course, it won't grow. However, it doesn't get smaller either. In addition, I will have funds to purchase stocks when the market falls.
- Defensive stocks. If I buy stocks, I will stick to good dividend paying stocks from strong companies. These types of stocks don't fall as much in a down market.
- Short poor performing companies. I don't want to be mainly short since a positive perception can cause the market to advance significantly. However, by being short some stocks, our portfolio decline will be minimized when the market falls.
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This is not financial or investing advice. Please consult a professional advisor.
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