With yields near five-year highs, it’s a good time to shop for bonds -- but experts say it’s best to stick to shorter-term securities.
For investors worried about a prolonged market sell-off, options have become a popular strategy to hedge your portfolio.
"For the casual observer, it looks worrisome," said John Massey, senior portfolio manager of large-cap growth portfolios at AIG SunAmerica. "But for market participants who have looked forward, it shouldn't be too much of a surprise. We think the economy is (still) strong fundamentally."
Many consumers tapped the soaring value of their homes during the recent boom years and used the equity for everything from home improvements to consolidating debt. But as the housing sector slows, spending will driven more by personal income--especially in a strong job market--as well as the healthy stock market.