Would putting my cash into a CD protect me from the bear?

EthanR answered 3 months ago …

A good question! The answer is yes.....and no! Taking all the money you have in stocks and putting it into a CD will definitely protect you from losing money if stocks go lower. On the other hand, the interest rate you will get will probably be wiped out by inflation. So you may need to look for some other alternatives, such as ETF's or stocks of precious metals, or defensive sectors.

Incidentally, if you do decide to go the all cash route, you may be better off with a money market than with a CD. The reason I say this, if the market begins to turn around, you can easily transfer that money back into stocks, whereas your money is locked in with a CD, unless you are willing to take the penalty for early withdrawl.