A Market Correction Could Be Coming, Are You Prepared?

Posted On January 7, 2020 2:12 pm
By: Steve Smith

The S&P 500 Index surged 29% in 2019 and started 2020 with an additional 1% rally that propelled it to new all-time highs. Investors were seeing nothing but clear sailing with an accommodative Fed and apparent progress with China trade deal.

Then came the missile strike killing Iran’s top general which seemed like it would certainly be a good reason for a pullback. Now even with a looming retaliation which could potentially lead to an all-out war, the market is less than one half of a percentage point off the high. To paraphrase Crocodile Dundee, “that’s not a correction!”

No-one can pretend to know how this will play out but it seems investors are shrugging off the current situation on the fact that during past geopolitical issues, from both Iraqi invasions to the North Korea missile launches, the stock market tends to work through anything that is non-financial or directly impacts the economy.

That said, this… Continue reading at StockNews.com

Tagged with: stock market

About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.