Unless you’ve been under a rock for months, you know that the markets have been on a tear since mid-November that has seen the S&P 500 clock nearly 12% gains and brought the Dow Jones near all-time highs.
Investors’ lust for stocks hasn’t gone unnoticed in mutual funds and ETFs. Stock-centered funds saw January inflows of about $77.4 billion — the highest amount since February 2000.
Naturally, the seemingly unconditional love for stocks — coupled with a few days of stalling — has many wondering whether the market is overheated and due for a correction or an even bigger setback.
If you’re convinced we’re ready to take a turn for the worse, it’s time to get defensive. If you want to dabble in mutual funds, there’s a number of funds out there that should provide a pretty big shield to hide behind: