Investing late in a bull market

Treasury yield curve is now flirting with inversion, a recession harbinger. At the time, we used no-load mutual funds. Portfolio Management. Jim Paulsen.

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Investing in the second longest equity bull market ibvesting rattle the nerves, especially now given the frequency of wild one-day swings. Since the beginning of the year there have been approximately 60 trading days when the Dow Jones industrial average has moved at least basis points in one direction or another, including many days when the swings were twice as large. Despite these still-bullish data points, McMillion recommends that investors be on the watch for signs investing late in a bull market could signal the beginning of its end, including:. As investors remain on the lookout for those potential developments that could suggest the bull market is near its end, they should also position themselves for potential rising volatility, says McMillion. She recommends that investors:. Bernice Napach is a senior writer at ThinkAdvisor covering financial markets and asset managers, robo-advisors, college planning and retirement issues. More from this author.

Coming up on nine years this March, the current bull market is getting old. Four stocks, specifically, that have strong potential to outperform include Alphabet Inc. CMI , and Citigroup Inc. No doubt then, the current run that has fed off of low interest rates, making equities significantly more attractive than bonds, looks to be approaching the end of its life. That hope may not be completely in vain as Daniel Chung, CEO at Alger, points out that the yield spread between equities and the year Treasury is currently about 2. That means that even though interest rates are starting to rise, they still have a way to go before they make a dent in that yield spread and bonds start to look more attractive than stocks. Tech giant and parent company of Google, Alphabet, is up 4.

Coming up on nine years this March, the current bull market is getting old. Four stocks, specifically, that have strong potential to outperform include Alphabet Inc.

CMIand Citigroup Inc. No doubt then, the current run that has fed off of low interest rates, making equities significantly more attractive than bonds, looks to be approaching the end of its life. That hope may not be completely in vain as Daniel Chung, CEO at Alger, points out that the yield spread between equities and the year Treasury is currently about 2. That means that even though interest rates are starting to rise, they still have a way to go before they make a dent in that yield spread and bonds start to look more attractive than stocks.

Tech giant and parent company of Google, Alphabet, is up 4. The company also has a healthy buffer of cash making it less reliant on borrowing as rates rise. Lam, which specializes in making machines that are essential in memory chip production, has risen 5. Like Alphabet, the hardware tech firm will benefit from a pickup in global growth and has a healthy stash of cash.

Cummins is down 5. As a company that manufactures engines used investing late in a bull market mining, it is tied to the price of commodities and thus, will be boosted by rising commodity prices. Citigroup is up 2. As interest rates rise, net interest margins, the prime source of bank profits, should widen. Citigroup looks especially attractive because of its potential for dividend payment growth. Technical Analysis Basic Education. Company Profiles. Top Stocks. Financial Technology. Investing Essentials.

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Story Stock A story stock is a stock that is trading markedly higher on optimistic expectations about its potential profits. Value Investing: How to Invest Like Warren Buffett Value investors like Warren Buffett select undervalued stocks trading at less than their intrinsic book value that have long-term potential. Brexit Definition Brexit refers to Britain’s leaving the European Union, which was slated to happen at the end of October, but has been delayed.

Bull Market Definition A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. Investing late in a bull market Flattener A bull flattener is a yield-rate environment in which long-term rates are decreasing at a rate faster than short-term rates.

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Peak Globalization Peak globalization is the point at which the movement lat integrated world economies reverses or latee. Treasurys of various maturities or utilities, at this time in the long-term market cycle. Finally, in many cases returns on real assets are often indexed, or linked, to inflation, creating a potential inflation hedge. Automated Investing. Matthew D. Moreover, the industries they typically operate in are considered public services, beneficial and necessary for society. This commentary is provided for informational purposes only and is not an endorsement of any security, mutual fund, sector, or index. Large-Cap Growth ETF SCHGwhich is overweight investkng information technology, communication services, and consumer discretionarywith underweight positions in financials and consumer staples. News Markets News. Peak A peak refers to the pinnacle point of economic growth in a business cycle before the market enters into a period of contraction. Compare Investment Accounts. Find out what investors should do to prepare. I am the President of Dohmen Capital Research, which has been providing market timing for blul and investors world-wide for over 40 years.