Blind bullishness is dangerous and, therefore, aggressive and conservative investors should have these factors in mind when prepping their portfolios for the road head. Dividend-paying equity ETFs like the
iShares Dow Jones Select Dividend Index Fund
Vanguard Dividend ETF
offer jittery investors a chance to maintain stock exposure while protecting against a potential correction.
Meanwhile, investors can boost their level of safety by paring back exposure to excessively risky emerging markets. Single nation products like the
iShares MSCI Thailand Investable Market Index Fund
Market Vectors Brazil Small Cap Index ETF
may be enticing during periods of relentless upward action. However, if clouds gather, instruments like EEM and VWO may be better choices. Their globally diversified investing strategies can help mitigate downward action.
The road ahead may not be perfectly smooth, but ultimately I do not feel that we should be heading for the exits here. By refocusing attention towards slightly less risky instruments, it is possible for even the most fearful investors to ride out a potential squall.
Written by Don Dion in Williamstown, Mass.
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