U.S. stocks are already into correction territory and BlackRock's Larry Fink says the market could lose another 10 percent, which would put us officially in a bear market. So what if Fink is right? What do you do if we do fall another 10 percent into a bear market? We ran the numbers using Kensho, a market historical analysis tool, to see which ETFs and stocks worked in the past when the market goes into full risk-off mode. First, we looked at all the times the last 30 years when the S & P 500 fell more than 10 percent in 30 days. This has occurred 15 times over that time span, according to Kensho. The options are relatively few during such a rapid sell-off but three exchange-traded funds do post gains. So batten down the hatches and buy gold, bonds and silver. If you want to stick with equities, some stocks could still perform well or at least preserve your capital. Using Kensho, we looked at all the times in the last decade when a good proxy for the bond market — the iShares 20+ Year Treasury Bond ETF — traded significantly higher (5 percent or more) during a 30-day period. We tracked the performance of Dow stocks during these periods to find the blue-chip stocks that trade like bonds. All five of the stocks above have healthy dividends and relatively stable cash flows, so they can become attractive options when the overall market falls and bond prices rise. However, unlike the short-term ETF trades we first discussed, these stocks will likely provide better returns when you hold for a longer time period to ride out the volatility of 2016. You'll also actually get to collect that dividend payout as well. Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.
