What good is a 2% or 3% annual yield if you can lose it in a single trading session?
The Nasdaq and Russell 2000 are officially in bear markets, which means they’re down 20% from their peak. But bear markets don’t have to stop at 20%.
They can just keep on collapsing. And the weakest links can fall much, much farther than 20%.
In fact, they often do. Just take a look below at the 444 S&P 500 components that were part of the index during the 2007-09 selloff. Only a handful fell even close to the bear-market minimum.
Meanwhile, almost a quarter hemorrhaged 70% of their value or more!… Read more