The stock market is near all-time highs, which makes for a great time to plan for a big sell-off, even if you don’t expect one to come.
Why does it matter? A sell-off that sends the stock market down 10% from current levels would be very average by historical standards.
Regardless of whether you expect the market to go lower, most would agree that it’s better to formulate an investment strategy during times of calm than times of stress.
What’s the word on the street? “I think we make the best decisions when they are in a vacuum,” Invesco chief global market strategist Kristina Hooper told patriotic bets.
A handful of market headwinds that are on the radar of many investors.
The covid-19 delta variant is without a doubt too 5 of possible variable that could shift the market down
The timing of tighter monetary policy, as a premature move by the Federal Reserve could do more harm than good for long-run economic growth.
And then there’s the statutory debt ceiling, which the U.S. is expected to hit on Aug. 1.
The truth is there’s no way to know for sure ahead of time if a sell-off will prove to be a buying opportunity or something far worse. But formulating a sell-off strategy before it happens seems like sound advice.