Buying These 2 Stocks Is a Good Way to Hedge Against a Market Crash
There's never a shortage of confident-sounding predictions about what's coming up for Wall Street, but no one ever knows for sure when the next market crash will hit. Indexes have soared so far in 2021, mainly thanks to surging spending by consumers and businesses. Those trends could quickly change, though, as they have several times since the pandemic struck in early 2020.
But if we can't be sure about their timing, we can be sure that downturns will happen at some point. They're inevitable. That said, jumping in and out of stocks is a poor strategy for hedging against that risk.
Investors who try to time the market are likely to miss at least some of the rebound that follows a plunge, even if they guessed right about the timing of the downturn. You're better off buying and holding high-quality stocks that provide solid returns even through economic and market slumps.
Source Fool.com
