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Three Dividend Stocks To Survive The Next Market Correction – MarketWatch

February 17
16:39 2017

The last three months have been full of fireworks, but the stock market has continued to climb the proverbial “wall of worry.”

The S&P 500 SPX, -0.25%   is up 9.7% since Election Day through Thursday and sets new highs seemingly each week. The Dow Jones Industrial Average DJIA, -0.34%which has set six straight record closes through Thursday, remains comfortably above 20,000 and looks like it will stay there.

But despite the rally, many investors are nervous.

After all, markets front-loaded gains for 2017 in November and December, and it’s now up to President Trump and a Republican Congress to follow through on a business-friendly agenda that investors have already priced in to shares.

Furthermore, while markets hung tough during Federal Reserve Chairwoman Janet Yellen’s latest visit to Capitol Hill, we saw a tremendous spike of about 20% in the CBOE Volatility Index VIX, +2.47% over just a few days. That’s a clear sign many traders are feeling uncertain about what the future holds in regards to interest rates and how that may impact the stock market.

And let’s not forget that all this optimism in recent weeks may not materialize in the form of real economic growth. Recently, the World Bank warned that economic expansion in the developed world is painfully small, with just a 1.8% a growth rate expected this year.

If you’re feeling a bit worried about the state of the stock-market rally, you have good reason. But as the last few years have shown, those who hide out in cash can miss out big by misinterpreting the signs.

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