FYI: For risk-averse investors, there seems to be nowhere to hide these days. High volatility and high valuations make stocks an unsavory option, and bonds don’t look much better in the face of rising interest rates. And cash still pays next to nothing. But if you have a 401(k), you have an oft-overlooked option.
Related Data
Stable value funds—found only in employer-sponsored retirement plans—combine high-quality fixed-income portfolios with an insurance wrapper. When times are good, investors earn less than they would without the protection, but when things get choppy, the insurance kicks in and protects their principal. In 2008, when intermediate bond funds lost 4.7% of their net asset value, these funds returned an average of 4.6%, according to Hueler Analytics, a Minneapolis-based firm that tracks and analyzes stable value funds.
Regards,
Ted
https://www.barrons.com/articles/no-stomach-for-stock-market-swings-consider-stable-value-funds-1538159332?mod=hp_INTERESTS_funds
