Time To Raise Cash And Prepare For The Next Crash

2025-05-02 16:23:25 ET

Summary

• Market volatility in 2025 presents buying opportunities for income investors; sell into rallies to raise cash for future corrections.
• Expect a summer recession and bear market due to tariffs and declining consumer sentiment; adjust portfolios towards fixed income and credit securities.
• Recommended funds include FSCO, CRF, OXLC, JAAA, and TLTW for income and potential capital appreciation during market downturns.
• Bonds provide portfolio stability; TLTW offers high-yield income and potential gains if the Fed reduces interest rates in the latter half of 2025.

As a now-retired income investor, I am not as concerned with the daily gyrations in the stock market that we have witnessed so far in 2025; however, I do watch carefully for buying opportunities. If you are still in accumulation mode, you may be getting whiplash from the frequent periods of volatility that have been affecting many growth stocks, especially in the technology sector. However, as an income investor, I look forward to the market corrections that cause prices to crash on many of my income holdings that offer buying opportunities....

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