Bonds go up and down. Money markets are steady.
So, I don’t suggest being in bonds. I suggest being in money market.
Now…those funds will likely not fall nearly like the overall market. It could be minimal. But I’d rather be in something that stays at a steady $1 per share, such as a money market fund.
The risk of the asset dipping is not worth the paltry additional interest you’d earn, in my opinion. Therefore, you’d have a risk-to-reward ratio flipped against you.
But will those funds to better, relatively speaking, than stocks in the downtrend? Yes.