I have not been a proponent for these strategies, at least not as a long term strategy, but I'm considering selling a couple non-equity fund/ETF's and going that path with some money. Thought I'd reach out to see if anyone else is thinking similarly or has already done so. If so, what would be your suggested choices.
The basis for this is that I think we are in for a fairly long duration of economic whoa and we will be testing new lows in the market over the next year. That's my crystal ball. Some think the S&P 500 may not bottom until the 1500-1800 range. That's an additional drop of 30-40% from Fridays close. Maybe I'm just reacting to my morning coffee and Barron's paper but I certainly don't see a V shape recovery to this 'yet to be announced recession'.
In any case, I'm considering selling my gold ETF and a bond fund and putting that money into one or 2 of these funds. I did some initial research on Schwab and re-read a commentary David had here from Feb. 2019.
My short list:
- GSSFX (TF at schwab)
- FVALX (TF at schwab)
- MNWAX a very consistent though muted return trend up in all markets
I refuse to pay the TF so I guess 2 on my short list won't happen, sadly. I'm leaning to the last 2 on the list.