{"id":12030,"date":"2022-10-27T16:47:39","date_gmt":"2022-10-27T16:47:39","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=12030"},"modified":"2022-10-27T16:48:11","modified_gmt":"2022-10-27T16:48:11","slug":"lower-risk-investment-options-for-a-volatile-market","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/lower-risk-investment-options-for-a-volatile-market\/","title":{"rendered":"Lower-Risk Investment Options for a Volatile Market"},"content":{"rendered":"\n

Brynne N. from Rockford, IL asks: <\/em>Hi Mitch, I am writing to ask you for ideas for relatively safe investments in highly volatile markets. I just do not have the stomach for all the ups and downs, but I still would like to see some growth over the next couple of years. Thank you.<\/p>\n\n\n\n

Mitch\u2019s Response:<\/strong><\/p>\n\n\n\n

Thanks for writing, Brynne. I can empathize with the challenges of navigating elevated market volatility \u2013 it is certainly not easy. Since you explicitly mention you do not have the stomach for the ups and downs, I am going to make my response solely about investing in fixed income in the current environment. The good news for you is that your options are better today than they have been in years.<\/p>\n\n\n\n

Let\u2019s start with the \u201crisk-free\u201d category, which includes Treasury bonds issued by the U.S. Treasury and backed by the government. Interest rates have been climbing quickly in 2022, which has resulted in rising yields on short-duration Treasuries \u2013 meaning you do not have to hold them for a long period of time to earn a modest but nicely positive return. Here is a simple table showing you where those yields stood as of the end of September:<\/p>\n\n\n\n

Duration<\/strong><\/td>1-Month<\/strong><\/td>2-Month<\/strong><\/td>3-Month<\/strong><\/td>6-Month<\/strong><\/td>1-Year<\/strong><\/td>2-Year<\/strong><\/td>3-Year<\/strong><\/td><\/tr>
Yield<\/strong><\/td>2.79%<\/strong><\/td>3.20%<\/strong><\/td>3.33%<\/strong><\/td>3.92%<\/strong><\/td>4.05%<\/strong><\/td>4.22%<\/strong><\/td>4.25%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Source: U.S. Treasury1<\/sup><\/em><\/strong><\/p>\n\n\n\n

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What To Do When the Market Experiences Downside Volatility<\/a><\/u><\/strong><\/p>\n\n\n\n

It is easy to fall in to emotional decision-making when the market fluctuates. You may be asking yourself questions like: What should you do when market corrections occur? Could volatility be an opportunity?<\/em><\/p>\n\n\n\n

Instead of giving into emotional decision-making, I recommend finding a strategy that could help you steer through any financial change Our guide, \u201cHelping You Manage Market Volatility,\u201d will provide you with insights and tips to do just that. Get answers to questions like:<\/p>\n\n\n\n