Six years have passed since the US exited the Great Recession, and the S&P 500 hasn’t suffered a correction of more than 20 percent in about four years.
In recent issues of Capitalist Times Premium, we’ve warned that the market could be due for a pullback, citing moderating economic growth, overly bullish expectations and narrowing leadership in the stock market.
Although the S&P 500 rallied to all-time highs in late February and early March, almost half the stocks listed on the New York Stock Exchange trade below their 200-day moving average.
We continue to monitor our favorite indicators for potential warning signs, but the stock market should continue to trend higher for now.
We still see opportunities in the current environment, but investors should be selective; those looking to put new money to work should consider Deutsche X-Trackers MSCI Germany Hedged Equity (NYSE: DBGR), the latest addition to our Wealth Builders Portfolio.
Over the past several weeks, we’ve taken profits on four Portfolio holdings and exited one laggard for a loss: