Here’s an article that shows why index funds are still the best long term solution for taxable accounts.
Although manged funds and hedge funds have higher pre-tax returns - taxes take a huge chunk of the gains making after-tax returns lower. Based on Morningstar’s research, only 3 out of 100 funds will outperform the S&P index on an after-tax basis.
Best strategy I can think of is to increase contributions in recessions to get the bounce when the market rebounds. I have taxable mutual funds too. I have some money invested in American funds and Oakmark. To be honest, they’re doing similar to the indexes. (Just as poor) All my money in my 401k is invested in index funds. And they’re down 42%. So there’s nowhere to escape as of now, but keep on investing and we’ll be rewarded in the long run.