Many investors are understandably nervous about the stability of today’s stock market. Not only is it entering the sixth year of a virtually uninterrupted bull market following the worst financial crisis in nearly a century, it has also registered robust gains in the last couple of years despite scant fundamental support from the economy or corporate earnings growth. But despite these worries along with the mounting fundamental and geopolitical risks, today’s stock market remains remarkably resilient and the uptrend is firmly in tact. How then will investors know when the time has finally come to begin moving to the stock market exits and begin hedging against a decline in earnest. Fortunately, history once again provides us with a road map of how to navigate our stock portfolios through potentially choppy markets waters in the months ahead. And one key event in particular has proven a notably reliable signal worth monitoring to signal that the time has come to take definitive action.
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