Will Preferred Stocks Weather the Coronavirus Storm?
With the stock market facing its first bear market since 2008, investors are scurrying to seek out investments that can hold their own amid dramatic levels of uncertainty. With the COVID-19 pandemic continuing to affect rising numbers of patients around the world, it's been increasingly difficult for investors to find shelter -- even in some traditionally reliable safe-haven investments.
Many investors aren't familiar with preferred stock, but it has some advantages that can be appealing during broader market downturns. With some features of regular stocks and some features of bonds, preferred stock can be a less risky alternative that can provide portfolio income. But as some investors have learned the hard way recently, even preferred stock has its risks. Below, we'll look more at what preferred stocks are and how they've fared during the bear market.
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Source Fool.com
