No. of Recommendations: 0
I will buy dividend-yielding stocks and index funds.

In a declining market, I don't see how index funds aren't much better than holding stocks. A bond fund's price that consistently moves opposite the SP500 is more ideal.

I agree with CD laddering though.


You need to decide on a strategy. When the stock market is down, assuming you have a long term view, buying a Total Market Index fund will be a good choice, if markets do go up eventually. Wendy is betting on high dividend stocks to be a better choice, though an awful lot of those are financials or REITs.

A CD ladder is a good choice if you are investing in fixed-income with the purpose of having steady cash flow. A CD ladder is useless for market timing when to get back into stocks and if it does turn out a stock market crash is accompanied by flight to bonds, a CD ladder will not get you an increase in value (except brokered CDs, and that is not a liquid market).
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