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Monday, November 9th, 2009

3 Ideas for Investing in a Down Market (Part 2)

April 16, 2008 by Kelly Phillips Erb  
Filed under Investing

3 Ideas for Investing in a Down Market (Part 2)

In the last post, we looked at the importance of choosing companies that
have strong fundamentals — companies that are likely to make solid
recoveries. Today’s subject will be index
funds.
This brand of mutual fund is often considered vital to an investment
portfolio in times of economic slowdown and down market.
Index funds
Index funds are collections of all the stocks on a certain index. For
example, it is possible to invest in an S&P 500 index fund, in which case you would basically own shares in all the companies listed on that index.
There are stock indexes for small companies (Russell 2000), as well as
foreign index funds …read more


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