1. Stock Markets Shift Into A More Volatile Gear
2. Most Cited Reasons For the Current Market Decline
3. Has the US Stock Market Run Out of Bounces?
4. Worried? How to Diversify Beyond Stocks & Bonds

Overview

Stock prices around the world are in a tailspin which may get worse before it gets better. As of the end of last week, 11 out of 23 major global stock markets were down the requisite 20% or more from their highs to qualify as bear markets. This is very troubling.

The US stock markets have been leading the world in terms of performance and were still up about 2% for the year at the end of last week. Not anymore: The Dow and the S&P 500 were sharply lower yesterday and so far today and are now in negative territory for the year. Today, I’ll focus on the current downward correction in stocks, what’s causing it and, unfortunately, why it may take awhile before it gets better.

Most investors are getting really nervous! Many are looking for alternatives to stocks. At the end, I’ll recommend several alternative investments that do not involve stocks or bonds. Maybe it’s time you take a serious look at them as a way to diversify your portfolio for times like this.

Stock Markets Shift Into a More Volatile Gear

I haven’t had a lot to say about the stock market this year because, frankly, there hasn’t been much to talk about. We are currently in the second longest bull market in history, going on 10 years since the low in early 2009. This has been a “buy the dips” market ever since – the current downward correction notwithstanding.

We’ve seen numerous new record highs set along the way. There’s been nothing to do but stay 100% invested, ride out the occasional dips and count your growing profits. The Dow Jones Industrial Average has soared from around 7,000 in early 2009 to near 27,000 at the record high set in October.

DJIA - Monthly