Clouds may be gathering. Should investors be worried about a storm?
Let’s look at some factors that could trigger a market selloff in the weeks or months ahead.
(Note: I'm not saying a selloff is definitely going to happen—I want you to be prepared if it does.)
Factor #1: Stocks are trading near record highs
Stocks have posted multiple record closes, and the S&P has been trading well above its 200-day moving average. (1, 2) When stocks repeatedly push new highs, it’s not uncommon to see a pullback as traders take profits.
Factor #2: Investors are watching the Fed like hawks
Is a zombie recession coming? By that, I mean that renewed fears of a "hard landing" recession have emerged from the grave and are walking among us. Many analysts were convinced that the U.S. economy could achieve a coveted “soft landing,” but they might be overly optimistic.
What makes some economists worry about a recession?
What’s the most reliable social media platform? Your answer probably varies from what your parents or (adult) children would say. (1)
And actually, there’s no real consensus. Many of us turn to Reddit, YouTube, or TikTok to learn about money, yet we know influencers and advertisements don’t always speak the truth. Surprisingly, that doesn’t stop us from buying in to the financial advice we find on those platforms. (1)
