Excerpt from the Article:
After the U.S. stock market made all-time highs last year, I spoke with Jeffrey Bierman, a professional stock-trader with more than three decades of experience. Bierman also lectures on TheoTrade.com and TheQuantGuy.com, and is an adjunct professor at Loyola University and DePaul University, both in Chicago.
At the S&P 500’s SPX, -0.07% high he predicted a drop to 3600 or lower in 2022, and he was right. I recently caught up with Bierman to discuss his latest projections and strategies for U.S. stocks:
MarketWatch: What strategies do you recommend for investors in this environment?
Bierman: First, you can’t be 100% in stocks. Second, you have to look for yield. The yield on bonds right now is competitive with stocks. If you can get 4% for a bond with half the risk of the S&P 500, then it pays to buy bonds because the yields are secure and volatility is lower. Move more towards fixed income and move away from high beta stocks with high multiples. Because in bear markets, there is little to no growth. Value dominates in a bear market, and growth dominates in a bull market.