Bonds
Bonds tend to be less volatile than stocks. When the stock market is expected to be more volatile, investors may want to consider increasing their bond allocation. It is worth noting that the bond market is not immune to volatility.
High-yielding Stocks
High yielding stocks are another opportunity that investors can explore. The income component of high-yielding stocks tends to make these investments less volatile than more cyclical stocks, which have lower or no dividend yield. Of course, the 2008 financial crisis highlights that even this strategy may not be immune to severe market stress.
Some Mutual Funds
Some mutual funds that have historically exhibited lower volatility, relative to the broad market, as well as managed account solutions - particularly those with a defensive strategy are good options too.
Options Strategies
Additionally, there are several options strategies, including straddles, strangles, and other spreads, which can be used to take advantage of expected market volatility.