February stock market heading for correction

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It would instead total closer to the pre-crisis baseline which in…. Strong evidence indicates the U. Brian Maher has more…. Jim Rickards shows you why a recession could be here much sooner than you think, and the best way you can prepare yourself for it. And we called both decades ago! Autos are the last splurge for aging Baby Boomers.

Their kids leave the nest and finally. The OECD released its latest report that the United States and global economy is in a low-growth trap. Could an economic disaster be on the horizon and coming fast? Suddenly central banks are mesmerized by yield curves. If it was only a joke. After spending almost the entire time in….

Today is a day of little economic news other than serial bond defaulter Argentina seeing strong demand for its new year sovereign bond issue. This is a syndicated repost courtesy of Money Morning - We Make Investing Profitable.

To view original, click here. Investors are anxious about a stock market correction after all three major indexes closed at record highs last month. This record-shattering performance is the current pinnacle of a seven-year bull market.

A record-breaking stock market is usually great for investors, but many wonder if these record highs are a sign of a stock market bubble. First, a correction and crash differ in severity. While both a correction and a crash cause a loss of stock market value, a stock market crash is far worse.

For instance, during the stock market crash of , the U. A completely unique gold play is forming in the markets. The second difference is the effect each has on the economy. A correction is a pullback that brings the stock market back to more sustainable levels.

When the correction ends, the thinking goes, the market will be more fairly valued, because the price of stocks will better match the earnings and growth of the underlying companies. However, a financial crash can be catastrophic to the value of the entire market, even strong companies. Once a market starts to go down, no one knows how far it will slide until it begins to grow again. And that can be a big problem for unprepared investors. Investors can start their preparation by identifying the signs of a stock market correction, and these are the signs we are seeing right now….

But, with the Fed expected to hike interest rates this month, a correction could occur soon. There are two major reasons why a stock market correction might occur after a rate hike. The first is because higher interest rates make the bond market more attractive. Interest rates have been at historically low levels for a long time.

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As a result, investors who might have invested in bonds have been forced into the stock market to get reasonable returns. In a near-zero interest rate environment, you are close to paying to hold bonds, rather than being paid. This has artificially inflated the stock market. When the Fed begins to raise rates, some of that money will return to bonds and lead to a correction in stocks.

Corporations have been using cheap money to buy back their own shares. This has pushed up stock prices.

Gold is a safe-haven investment. And when the stock market is volatile, investors will turn to gold, making your investment worth more. Buying gold-backed ETFs is as convenient as buying stocks. The SPDR Gold Trust ETF NYSE Arca: GLD is one of our favorite ways to reap the benefits of gold.

Second, if there is a stock market crash, shorting the overall market will return a nice profit.

Still Waiting for a Correction? Stock Market Outlook for

Of course, the inverse is true, as well. That means only a small portion of your portfolio should be placed in SH, and you need to monitor the market closely. Third, buying stocks in the right companies will keep your money safe during a stock market crash and allow you to profit from the recovery.

It won a billion-dollar cyberwar contract with the Department of Defense in June. Becton, Dickinson and Co. BDX is a supplier of many single-use medical products. The need for a constant supply ensures a healthy market no matter what the stock market does.

Will There Be a Stock Market Correction in ? - The Wall Street Examiner

In addition, people need healthcare regardless of the economic picture or the movements of the stock market. American Water Works Co. AWK provides both water and water supplies across North America. Water will always be a necessity, no matter what the stock market does.

And because AWK is an established company with facilities across the continent, the stock will hold its value better than investments in fad industries.

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World stock markets were mostly lower overnight, due in part to falling crude oil prices recently and by lower world government bond market yields. But now, the trader has finally broken his five-year-long silence. Must Read Will There Be a Stock Market Correction in ? Click here to learn how you can follow the money.

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