Bond returns have a low correlation with stocks. Short term and international bonds are sometimes negatively correlated. Commodities have a low but positive co

Bond returns have a low correlation with stocks. Short term and international bonds are sometimes negatively correlated. Commodities have a low but positive correlation with stocks. Some observers suggest that commodities boom before recessions. The Goldman Sachs Commodity ETF (symbol GSC) is an easy way to invest in a diverse set commodities. Many other funds are targeted (eg, oil or gold). iShares Core U.S. Aggregate Bond ETF (symbol AGG) is the largest bond ETF. There are many others. You can always stuff cash in your mattress. As others suggest, you can also short the market. Shorting housing for a small investor is not super easy. Diversified long term buy and hold investing in stocks regardless of current conditions has historically been a great bet.