"The next recession is going to be brutal."
Recent headlines on the economy — or, perhaps closer to home, your 401(k) balance — might have you on edge.
Breathe. It's OK.
If you haven't already done so, you can always shift some of your money away from equities — sent tumbling by President Donald Trump's tweets one day and Germany's finances the next — and into places where returns are not eye-popping but steadier.
Safe havens like bonds and certificates of deposit can protect the large gains investors have seen over the last decade should the market keep losing ground. And there's a lot to lose: Since 2009, the S&P 500 is up more than 290%.
More from Personal Finance:
What you should do now to avoid tax surprise next year
How to protect your savings in a trade war
Why women are less prepared for retirement than men
"People are not saying 'Gee the stock market has gone up for 10 years and I've had a good ride; maybe I should go somewhere else,'" said Richard Bernstein, a former chief investment strategist at Merrill Lynch who now runs his own firm.
They should be, Bernstein said. His firm recently reduced its equity holdings to around 55%, from 75%, he said.
How much you should turn up the safety lever on your portfolio, though, should be less about the latest recession risks and more about your age and your financial goals. (See: Should you really do nothing amid market volatility? It depends on whether you're 27 or 63.)
Here are some options to consider if you want decent returns and less anxiety.
Bonds
Bonds are a good option for investors interested in "capital preservation," Bernstein said.
Over the last five years, the Fidelity U.S. Bond Index Fund has had an average annual return of 3%. And over the last decade, the fund lost value in only one year — a 2.19% dip in 2013. The Vanguard Total Bond Market Index fund has had an average return of 3.69% over the last decade.
Municipal bonds have been doing particularly well recently. The average return this year is 4.5%, according to Morningstar.
"Bonds can create that protection to offset the swings in comparatively risky investments such as stocks and derivatives," said Laleh Samarbakhsh, a finance professor at Ryerson University.
Gold
Unprecedented levels of uncertainty have caused gold to outperform stocks and bonds in the last year.
"It's performed great," Bernstein said. Indeed, an ounce of gold is worth around $1,500 today, compared with $1,200 a year ago.
And putting just 5% of your portfolio in gold can do a lot to carry you through market plunges, said Joseph Foster, manager of the Van Eck International Investors Gold Fund. "A small portion hedges against a larger portion of your portfolio against financial risk," Foster said.
And he said the good times for gold could continue: "We'll see gold much higher than it's today if we go into a global recession."
Keep in mind that gold is a very volatile asset. Over the last three years, the VanEck International Investors Gold Class C lost an average of 4% a year. So far in 2019, it's up 36%.
Savings accounts and CDs
You can pick up decent returns in certain savings accounts and CDs.
"It's important to shop around because not everyone pays the same rates," said Greg McBride, chief financial analyst at personal finance website Bankrate.com.
Bankrate ranks the most generous offers and you can search by ZIP code. CDs can also be worth a look. You can search for the best options at DepositAccounts.com.
Bank CDs and savings accounts are subject to protection from the FDIC of up to $250,000.
