The stock markets around the globe are experiencing a dramatic sell-off today. Fears of a double-dip recession in the U.S. and the potential acceleration of the European debt crisis are increasing.
On a day like today, when markets plunge in panic, it is good to see that defensive strategies are available to individual investors. One of our favorites is the FidelitySignal.com website. The site advocates a conservative, but flexible strategy that involves investing in bond mutual funds.
The FidelitySignal.com site also provides buy, hold and sell signals to scale in or out of investment areas, so investors have the option to convert holdings into a money market fund in highly risky situations. The Armageddon Portfolio is a model portfolio displayed on the site to track the results of investing using the flexible bond fund strategy.
The results are impressive. FidelitySignal.com was able to move investments into cash reserve in time before the recent market turmoil, but still show a positive year-to-date return for the Armageddon portfolio.