Is a correction coming? It sure seemed like it this week.
Stocks tumbled roughly 0.7%, the first pullback of that magnitude in over a month. That’s certainly no reason for investors to panic. A 0.7% pullback isn’t much when stocks entered the week near all-time highs. But the tone on Wall Street seemed to change this week.
The VIX, a.k.a. the volatility index, spiked more than 9%. Small caps took it on the chin, falling 3.5%. And all of this came during a week in which Alcoa (NYSE: AA) kicked off earnings season with a bang. Typically, an Alcoa earnings beat gives investors a reason to buy … not sell.
Still, we’ve heard this song and dance before. Time and again over the last year and a half, analysts have insisted that a mass correction has finally arrived. Each time, they’ve been wrong. Could things be different this time? If so, we’ve got you covered.
What to do in case of a correction was a major theme among our writers this week. Marshall Hargrave explored three stocks to dump before a potential summer correction. Tyler Laundon wrote about sticking to your strategy even when the investment climate turns sour. I contemplated whether we’re in for a correction of 10% or more.
It wasn’t all about rainy-day scenarios at Wyatt Investment Research this week, however. Sunnier topics were also on our mind.
Here’s a sampling of what else was on our experts’ minds:
Get Ready for the Next Biotech Boom– There is no doubt that generic drug makers will thrive in the upcoming cost-driven environment of U.S. health-care reform. But there is one area of generics that will thrive more than any other.
Three Stocks to Dump Before the Summer Correction– When will the stock market correction come? And how bad will it be? Here are three stocks that are worth selling before the market corrects.
The Only Investing Strategy That Works Is the One You Stick To– The only investing strategy that works is the one that you stick to. It sounds overly simple I know…find an investment strategy you believe in and stick with it. However, most investors fail to take this simple approach. And it costs them.
Who Wins as Energy Policy Evolves?– A couple of weeks ago the Obama administration took a first step toward opening up U.S. oil exports. And it’s a big deal. This is an incremental step toward lifting a 40-year-old ban on oil exports.
Three High-Yield Stocks for Socially Responsible Investing– To invest in companies spawned by the seed of political patronage – subsidiaries, tax credits, tariffs, or other bestowed privileged – is socially irresponsible. Therefore, my socially responsible investment portfolio would exclude $100,000 electric car companies, condor-shredding windmill farms, land-gulping solar-powered utilities.
Has the Long-Feared Market Correction Arrived?– Stocks have risen for so long that it’s almost puzzling when they fall for any period longer than a couple trading sessions. And that’s what made the last few days somewhat shocking.
How to Increase Your Dividend for Apple Stock– Most investors don’t realize they can produce income on investments they already own. It’s one of the most overlooked sources of income in the investment world today and when coupled with a great company like Apple you have a solid source of income for years to come.
Three Reasons Why You Should Invest in the Self-Storage Industry– 9% of American households currently rent a storage unit and a self storage facility can be found in 84% of American communities. With both capacity and occupancy rates rising, this is a great time to own storage units.
Thanks for making us part of your weekend. Throughout the week, please make sure to visit WyattResearch.com for the information you need to know and opinions you need to read to become a better investor.