Could This Simple Strategy Save You From the Next Bear Market?

Dan Caplinger, The Motley Fool
·4-min read
Could This Simple Strategy Save You From the Next Bear Market?

The stock market continued to move lower on Wednesday, with market participants clearly expressing their preference for old-economy value stocks over the high-growth momentum-driven plays that performed so well throughout the last part of 2020. As has commonly been the case in the past couple of weeks, the Dow Jones Industrial Average (DJINDICES: ^DJI) held up reasonably well thanks to its hefty helping of financial stocks, but the S&P 500 (SNPINDEX: ^GSPC) lost more ground, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) saw even bigger declines. What makes it simple is that it involves investing in the same 500 stocks that make up the S&P 500 and are the basis of so many index-tracking ETFs and mutual funds.