Friday, October 9, 2015

The Market Has Run Out of Steam...........ANOTHER PESKY FACT!

The Market Has Run Out of Steam

This index measures how consistently stocks are moving together in the market — in this case, the S&P 500.

Over the past year, this index has been as high as 75% — because 75% of stocks were going up with the index. That's the "rising tide" of a bull market at work. But things have changed dramatically in the last several months.

In July, the index suffered its quickest drop in the past four years, plunging to just 45% ...

And then in the first week of August, the index hit 40.5% — a new 5-year low!

We all know what happened after that. And August's huge drop and the wild volatility that followed were just the beginning.

This shift is a clear sign that you must start getting VERY selective about which stocks you own. The days of racking up triple digit gains by owning an index fund are over.

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