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I can only tell you what has worked for me. I was 100% in CDs when the 2008 crash hit. I'm content with 5-5 1/2% and I don't have the time to watch my portfolio or trade. When the CDs all rolled out in 2011, I took the plunge into the market. I bought individual dividend paying stocks like Altria, Verizon, Intel, GE, ATT, Pfizer and a few others. They average around a 5% dividend and since 2011 most have gone way up. I have them in 2 accounts. Rate of return since 2011 has been 9.6% in one and 16% in the other. I'm not sure what I would do today because my stocks look much pricier today, some have doubled. These stocks are called defensive stocks because they are low volatility and considered "safe" during downturns. Since Christmas when the market began to fall I'm up about 8%. My sister, on the other hand, is all in mutual funds and has been flat or down since then. I really don't know exactly what I'm doing, but it's working so far.
No stocks are safe in a down turn, are you kidding .
That dividend darling dvy got hammered in 2008 as dividends were cut and suspended. When the smoke cleared it fell more then the overall markets did.
Don't ever think any stocks are safe. The dividend aristocrates are rotated out very often because they are all subject to the same thing any other stocks are.
No stocks are safe in a down turn, are you kidding .
That dividend darling dvy got hammered in 2008 as dividends were cut and suspended. When the smoke cleared it fell more then the overall markets did.
Don't ever think any stocks are safe. The dividend aristocrates are rotated out very often because they are all subject to the same thing any other stocks are.
If you were ever so lucky to buy at the absolute bottom of the market in the 08-09 period:
Company - price / current price / 7 year time frame / ROI
AT&T - $25 / $39 / 56%
Intel - $13 / $32 / 146%
GE - $7 / $31 / 340%
VZ - $25 / $52 / 108%
DJIA - 6600 / 17800 / 170%
Doesn't include dividends but you get the picture. Picking individual stocks you take on a LOT of risk for, in MOST cases, just average to below average returns, unless you feel pretty solidly about them for some compelling reason.
I've made money on individual stocks in the past but I also completely admit I've taken on a lot of risk. Indexing is boring, but it works.
I can only tell you what has worked for me. I was 100% in CDs when the 2008 crash hit. I'm content with 5-5 1/2% and I don't have the time to watch my portfolio or trade. When the CDs all rolled out in 2011, I took the plunge into the market. I bought individual dividend paying stocks like Altria, Verizon, Intel, GE, ATT, Pfizer and a few others. They average around a 5% dividend and since 2011 most have gone way up. I have them in 2 accounts. Rate of return since 2011 has been 9.6% in one and 16% in the other. I'm not sure what I would do today because my stocks look much pricier today, some have doubled. These stocks are called defensive stocks because they are low volatility and considered "safe" during downturns. Since Christmas when the market began to fall I'm up about 8%. My sister, on the other hand, is all in mutual funds and has been flat or down since then. I really don't know exactly what I'm doing, but it's working so far.
There is no such thing as a safe stock during a crash... dividends can be cut, which can send the most seemingly stable stocks way down.
Altria went down roughly 41% during the crash
Verizon went down roughly 50% during the crash
Intel went down roughly 55% during the crash
General Electric went down roughly 86% during the crash
There is no such thing as a safe stock during a crash... dividends can be cut, which can send the most seemingly stable stocks way down.
Altria went down roughly 41% during the crash
Verizon went down roughly 50% during the crash
Intel went down roughly 55% during the crash
General Electric went down roughly 86% during the crash
AT&T went down roughly 51% during the crash
Pfizer went down roughly 59% during the crash
Well, I'm not expecting a crash on par with 2008, I don't think that the same forces are at work. As for Altria, my largest holding, it's gone up 134% since I bought it for 26. My VZ is up 50% and AT & T up 35%. That's stock price alone, not including the dividends I've been collecting for 5 years. I only have half my money in the market, so I'll be fine.
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in the other. I'm not sure what I would do today because my stocks look much pricier today, some have doubled. These stocks are called defensive stocks because they are low volatility and considered "safe" during downturns. Since Christmas when the market began to fall I'm up about 8%. My sister, on the other hand, is all in mutual funds and has been flat or down since then. I really don't know exactly what I'm doing, but it's working so far. 
