Are there other stock funds that maintained the long-term technical uptrend without a dip? Powershares S&P 500 High Dividend Equity (SPHD) managed this feat, bouncing off a “higher low” before traveling to a brand new perch. And wouldn’t you know it… SPHD pursues investment returns that correspond to the price and yield of a “low volatility” index called the S&P 500 Low Volatility High Dividend Index.
Is there a definitive take-away from market instability over the last month as well as market inconsistency over the last three months? Yes. Specifically, conservative stock choices are providing more reasonable rewards for the risk. You might prefer to select a non-cyclical sector with an allocation to utilities, staples or health care. By the same token, you might like a more diversified approach that targets low volatility, dividend-oriented assets.