Investors have several choices when it comes to making "flight to safety" portfolio choices but the obvious core holdings are U.S. Treasury bonds, gold, utility stocks and junk bonds. The best investment for 30-year U.S. Treasury bonds is the 20+ Year Treasury Bond ETF ( (TLT) ). Gold bullion is best traded using the SPDR Gold Shares ETF ( (GLD) ). Investors seeking dividends invest in the Utilities Select Sector SPDR Fund ( (XLU) ).
Investors interested in junk bonds can trade the SPDR Barclays High Yield Bond ETF ( (JNK) ). Typically, junk bonds perform in tandem with stocks, not bonds. Corporate debt is at a record high so it's not prudent for investors to stretch for yield, but this exchange-traded fund can be traded.
Observe the 200-week simple moving averages as these are the "reversion to the mean" for each exchange-traded fund. The "reversion to the mean" is an investment theory that the price of an ETF will eventually return to a longer-term simple moving average. A logical choice that's easy to track is the 200-week simple moving average. A ticker trading above its 200-week simple moving average will eventually decline back to it on weakness. Similarly, a ticker trading below its 200-week simple moving average will eventually rebound to it on strength.
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