The Bear Mauls Our Stock Picks
But a bear fund we suggested shot out the lights.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
In How to protect your Money Now (April 2008), we cited 12 stocks that we thought would hold up well during hard times. Our picks in two industries -- drugs and energy distribution -- did just that. But our other choices sank beneath the waves.
In all, the dozen lost an average of 35% (including dividends) through February 6, edging Standard & Poor's 500-stock index by less than one percentage point. Teva Pharmaceutical (symbol TEVA) lost just 8% over the period, reinforcing our belief that this is a stock worth holding for years (see 7 Blue Chips to Hold Forever). Drug giant Eli Lilly (LLY) fell 22%, a decent showing. Royalty trusts San Juan Basin (SJT) and Cross Timbers (CRT) and pipeline operator Magellan Midstream (MMP) surrendered 26%, on average. The big losers were Dow Chemical (DOW), DuPont (DD) and Whirlpool (WHR), down 70%, 43% and 59%, respectively.
Not all of our picks were disasters. We suggested hedging your bets with Hussman Strategic Growth fund (HSGFX). It lost just 6%. Best of all was our recommendation of Prudent Bear (BEARX). The fund, now called Federated Prudent Bear, gained 22%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Outside of Treasuries, bonds weren't much of a haven for investors over the past year. Our safest pick in Bond Funds Reduce Risk (April 2008), Fidelity Advisor Government Income (FVITX), returned 6.1%, thanks to the big rally in Treasuries. Three of the other bond funds we labeled "safe" held their losses to less than 1%. They are Dodge & Cox Income (DODIX), Harbor Bond (HABDX) and TCW Total Return (TGLMX). A fourth, Vanguard Inflation-Protected Securities (VIPSX), lost 5.1%, but we think its built-in inflation shield will prove a tremendous advantage in the years ahead.
Among municipal-bond funds we spotlighted, Vanguard Short-Term Tax-Exempt (VWSTX) returned 3.4%, and Fidelity Intermediate Municipal Income (FLTMX) gained 2.1%. But the riskier T. Rowe Price Tax-Free High-Yield (PRFHX) dropped 17.4%.
-
Dow Adds 1,206 Points to Top 50,000: Stock Market TodayThe S&P 500 and Nasdaq also had strong finishes to a volatile week, with beaten-down tech stocks outperforming.
-
Ask the Tax Editor: Federal Income Tax DeductionsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on federal income tax deductions
-
States With No-Fault Car Insurance Laws (and How No-Fault Car Insurance Works)A breakdown of the confusing rules around no-fault car insurance in every state where it exists.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
-
How to Invest for Rising Data Integrity RiskAmid a broad assault on venerable institutions, President Trump has targeted agencies responsible for data critical to markets. How should investors respond?
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for Fall Rate Cuts by the FedThe probability the Fed cuts interest rates by 25 basis points in October is now greater than 90%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
Fed Leaves Rates Unchanged: What the Experts Are SayingFederal Reserve As widely expected, the Federal Open Market Committee took a 'wait-and-see' approach toward borrowing costs.
