How to Prepare for a Stock Market Surprise

collected by :Haron Adler

as declared in The second quarter wasn't spectacular for stocks in the United States, but it produced solid returns with relatively little volatility. Stocks elsewhere around the world didn't fare quite as well and the bond market gave up ground, but for the most part, investors had some very welcome breathing room. Still, it's a good bet that difficult times will return to financial markets at some point, so this may be good moment to prepare for a future shock. In our quarterly report on investing, we've analyzed one time-tested approach: the balanced fund. Our survey includes articles with reporting on where the markets have been and analysis that suggests where they may be heading.

Remember: The Stock Market Still Has Downside Tripwires

At this point three months ago, ���market correction" and "Dow Theory" were hot button topics. However, the stock market then began its volatile slog away from the precipice, and the meaning of "tariff" morphed from global nightmare to negotiation strategy. However, if the stock market continues to meander, the downside alarms will remain primed. Downside alarm #1: Dow TheoryBecause the Dow Theory was widely discussed and analyzed in April, it is at the top of the list. The Dow Theory still labels the stock market as being in an uptrend.

The Future Of The Stock Market And The Future Of The FAANGs

referring to But, one cannot ignore the fact that the current stock market is so dependent upon just a small number of very large companies, in terms of market valuations. I concur with this conclusion, but it still doesn't the fact that we need to understand the importance of this sector in the behavior of the stock market. In many cases the rising stock market was supported by two sectors, consumer goods and consumer services. In the near future, the stock market will not be moving in "lock step" with the Fed as it has over the past nine years or so. As a consequence, major sectors, like "technology" may play a much bigger role in overall movements in the stock market than they have.

Can President Trump Really Take Credit for the Stock Market Rally?

Can President Trump Really Take Credit for the Stock Market Rally? But how much credit for the stock market rally and growth belongs to the president? As measured by the S&P 500, the stock market sits at 2,812 as of Wednesday. Ken Rogoff, Harvard economics and public policy professor, discussed the stock market rally and several reasons for recent stock market growth on CNN recently. When fixed investment returns are low, investors — seeking decent returns — have nowhere to go but the stock market.

Why a Trade Truce Could Add Almost $2 Trillion to the Stock Market

__________The United States stock market might be worth nearly $2 trillion more if not for the trade war. Consider that the cost that investors appear to be ascribing to President Trump's efforts to upend decades of trade relationships. But a closer look at the factors that usually drive the stock market suggests that the escalating trade tensions are holding stocks back. Two things happened at the start of the year that worried investors. Then, at the end of February, the Trump administration announced plans to impose tariffs on steel and aluminum, the first clear shot in the trade war.