Now can be a good time to line up the best mutual funds to buy for a January market correction.
While it wouldn’t be completely prudent to assume the market’s bull run is ending just yet, a healthy correction of 5% to 10% is almost certain and necessary before the market can justifiably resume its march upward. Therefore anticipating an opportunity early in 2017 for picking up shares of stock mutual funds at lower prices wouldn’t be a bad idea.
The Donald Trump rally could easily turn into retreat as investors lose faith that he will deliver on his campaign promises — namely corporate tax reform. And even if he and a Republican congress can push through the needed legislation to pass reform, it could be 2018 before those changes make an impact. Stock prices won’t likely survive on animal spirits until then.
This all points to a short honeymoon for the new president and a sell-the-news event come inauguration time.
With this backdrop, we share three of the best mutual funds to buy on a January market correction: