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The stock market has entered the danger zone. How one strategist recommends piloting around it.


Published on 2025-01-03 17:41:16 - MarketWatch
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  • A weak end to 2024 for stocks has bled into 2025. The S&P 500 has fallen for the last five sessions, shedding 2.8%. Markets have entered the "danger zone."

The article from MarketWatch discusses the current precarious state of the stock market, highlighting concerns about overvaluation and potential economic downturns. Strategist Michael Landsberg from Landsberg Bennett Private Wealth Management warns that the market has entered a "danger zone," characterized by high valuations, low volatility, and a lack of significant market corrections. He suggests that investors should be cautious, advocating for a strategy that includes reducing exposure to equities, particularly in sectors like technology that have seen substantial run-ups. Landsberg recommends increasing allocations to cash or cash equivalents, and also considers investments in sectors that are less correlated with the broader market movements, like utilities or consumer staples. He emphasizes the importance of portfolio diversification and risk management, especially in light of potential triggers like inflation, rising interest rates, or geopolitical tensions that could precipitate a market correction.

Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/story/the-stock-market-has-entered-the-danger-zone-how-one-strategist-recommends-piloting-around-it-5106ad65 ]
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