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4 Funds to Cut Your Risk in a Stock Market Correction


Risk cartoon

I don’t think that the recent market rumblings are signaling the onset of a bear market. But stocks are richly priced, and we’re overdue for at least a 10% plunge in share prices, which typically occurs once or twice a year, shaking investors’ confidence.

Particularly if the eight-year bull market has pushed your allocation to stocks higher than you intended, this could be an ideal time to reduce risk. We suggest here three first-rate exchange-traded funds and one mutual fund that let you ratchet down risk without making the mistake of dumping all your stocks.

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