If a Stock Market Crash Is on the Horizon, History Says Investing in This 1 Thing is the Smartest Opportunity Right Now
A mixed macroeconomic picture is causing some investors to worry over a possible recession or stock market crash.
Overview
The U.S. economy currently presents a mixed bag. Real gross domestic product (GDP) expanded at an annualized rate of just 1.5% during the second quarter -- a deceleration from 2.1% in the first quarter. The labor market has also cooled noticeably: Nonfarm payrolls rose by only 57,000 in June, while the unemployment rate ticked down to 4.2% and the participation rate fell to 61.6% -- its lowest level in more than five years.
Meanwhile, geopolitical tensions in the Middle East have repeatedly jolted oil and energy markets, feeding inflation pressures that ripple through transportation, manufacturing, and consumer goods.
Details
Even with all of this uncertainty, the S&P 500 (SNPINDEX: ^GSPC) has continued climbing to new highs. Nevertheless, the combination of decelerating economic growth, softer hiring, and energy volatility is leaving many investors wondering whether a crash could arrive at a moment's notice.
Source
Originally published at www.fool.com.