Last week, the S&P 500 sold off for five days in a row. That’s the first time that has happened since back in February. In addition, as we have warned recently, it now has been almost a full year since we have had a 5% sell-off. After watching the market action last week, we could be in for some tough sledding over the balance of September and into October, which is typically one of the weakest times of the trading year.
In times of distress, it often is good to look at Treasury debt and investment-grade corporate bonds, but not now. With interest rates still close to generational lows, and the prospect of inflation pushing rates higher the rest of the year and in 2022, it makes much more sense to buy ultra-conservative stocks that pay sizable and, most importantly, dependable dividends.