A Surprising New Portfolio Diversifier

Portfolio diversification is a primary objective for most investors in any market environment. And it is a particular priority today for many that wish to participate in any further upside the aging bull market may provide in the coming months while also seeking to protect against downside risk. Normally for stock investors, true portfolio diversification is achieved through allocating to other vastly different and generally uncorrelated asset classes such as long-term Treasuries and gold. But in 2014, a surprising new category has emerged from within the stock market itself to become an effective portfolio diversifier in the current environment. This category is the utilities sector, and it may now be worth another look following a recent pullback.

Please click on the link to read more of my article on Seeking Alpha.

3 Keys To Watch In The Week Ahead

Stocks took their first tumble in nearly four months late last week. While the magnitude of the pullback has thus far been modest at just over -3%, some investors are left wondering given already high valuations and a slowly retreating Fed at this advanced stage of the third longest bull market in history whether last week’s decline might be the start of something more severe. With this in mind, three key leading indicators are worth watching in the coming week, for they may foretell whether far greater declines may soon be in offing even if the broader market manages to find its footing.

Please click on the link to read more of my article on Seeking Alpha.

The Good News From A Bad Friday

Friday was another down day for stocks following the notable -2% decline on Thursday. After a few feeble pushes to the upside in the early morning trade, stocks rolled over and were solidly down once again by midday before battling back into the close. But despite the generally poor performance of stocks for a second consecutive day on Friday, several important points of good news accompanied the bad. Overall, investors could find reassurance at least as we head into the weekend that the latest stock market correction is taking on a more orderly behavior.

Please click on the link to read more of my article on Seeking Alpha.

Is A Stock Market Correction Imminent?

It is widely held even among the most bullish stock investors that the market is overdue for at least some sort of pullback. But this frequently discussed topic raises a number of additional important questions. When exactly might we expect such a correction to take place? How far can we expect the stock market to fall once it finally arrives? How should investors react once this correction finally takes place? And what will this anticipated pullback mean for the sustainability of the long running bull market?

Please click on the link to read more of my article on Seeking Alpha.

The Danger Of Buying The Next Dip

It is a common refrain heard from many cocksure investors today. Sure, the market is a bit expensive and overdue for a correction, but I’ll simply wait for the inevitable -10% pullback, buy the dip and ride the market to new heights. But does such a strategy make sense at this stage of the graying bull market? A check on market history over the last century provides some useful clues.

Please click on the link to read more of my article on Seeking Alpha.

Follow

Get every new post delivered to your Inbox.

Join 4,514 other followers