Five Funds for Smoother Sailing

If the market's volatility is getting to you, now is the time to trade in your high-risk funds for lower-risk replacements. Here are five super funds that keep risk in check.

It's getting bumpy out there. It's not just that the market has fallen 7.3% from the time it set its record high on July 19 through August 3. The ups, as well as the downs, are sharper -- with the Dow Jones industrials often rising or falling 200 points or more in a single day.

Rising volatility isn't a predictor of the market's direction. And the reason it feels so rocky lately is largely because the market has been remarkably placid during the past five years. Since the current bull market began in October 2002, the market has chalked up its longest stretch ever without so much as a 10% dip. Stocks have endured numerous periods with more thrills and spills than today. Stocks were twice as volatile, for instance, during the 1998 credit crunch after Russia defaulted on its loans.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

Sign up for Kiplinger’s Free E-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.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription


Why am I seeing this? Find out more here

Steven Goldberg
Contributing Columnist, Kiplinger.com
Steve has been writing for Kiplinger's for more than 25 years. As an associate editor and then senior associate editor, he covered mutual funds for Kiplinger's Personal Finance magazine from 1994-2006. He also authored a book, But Which Mutual Funds? In 2006 he joined with Jerry Tweddell, one of his best sources on investing, to form Tweddell Goldberg Investment Management to manage money for individual investors. Steve continues to write a regular column for Kiplinger.com and enjoys hearing investing questions from readers. You can contact Steve at 301.650.6567 or sgoldberg@kiplinger.com.