Stock Market Sell-Off: History Says This Is the Smartest Investing Move to Make Right Now
When stock prices start falling, make sure your portfolio is built to handle it.
Overview
When stocks begin selling off, problems tend to get exposed. Companies with struggling balance sheets, weak fundamentals, or a poor outlook are often hit the hardest. These factors can be overlooked when a bull market seems like a rising tide that lifts all boats. But the tailwind usually fades eventually.
The stock market isn't selling off yet, but it's certainly changing. The tech sector is still one of the best performers year-to-date, but the Magnificent Seven stocks as a whole are lagging, and the broader growth theme is struggling. Small-cap, value, and dividend stocks are now leading the S&P 500 as investors give more importance to valuations and financial health.
Details
When that happens, it's a good time to revisit your portfolio to make sure you're not overexposed to downside risks.
Source
Originally published at www.fool.com.