What To Do If You’re Worried About A Stock Market Pullback

You’re not the only one worried about high stock prices.

The lurking (and perhaps overdue) bear has other income investors worried, too. So let’s talk about the best buys for those of you worried about a stock market pullback of 10%, or 15%, or more.

We’ll start with some stalwarts from our Contrarian Income Report portfolio that weathered the last storm. Ironically (and probably fittingly) it happened off the bat – we launched our service, and the S&P 500 promptly dropped 10%!

No problem for us, though. In fact, subscribers who focused on their own holdings rather than the financial news may have missed the broader carnage altogether. Our core bond fund holdings (orange, red and green lines below) not only continued to pay their 7% dividends, but they also averaged a 5% gain while stocks were swooning:

What Pullback? Contrarian Bond Funds Sail

My bet is that carefully curated bond funds will repeat their resilience during the next pullback. But really, it shouldn’t matter if you have a true “no withdrawal” portfolio that lets you focus entirely on dividends and ignore price action altogether. Here’s why.

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