Mutual Funds Weekly: Why A Stock Market Correction Is A Valuable Gift For Investors

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Correction? What correction? Stock price declines are so last week. As financier J.P. Morgan once dryly observed, “The market will go up and it will go down, but not necessarily in that order.”

Here’s the thing to remember about market declines. They are an opportunity to take stock, literally, of your portfolio. If you can’t live with a 10% slide in stock prices, then you’re not being honest about your risk tolerance. The same is true when stocks are rising. If a 10% advance leads you to believe that stocks have reached a “permanently high plateau” (RIP Irving Fisher), you’re not being honest about the realities of investing.

This week’s digest takes an honest look at the current investing climate in the U.S. stock market. Among the key takeaways: Expect more things to go wrong with this aging bull, and be mindful of major political decisions about international trade and federal spending that will impact the U.S. economy and, therefore, stocks, in unforeseeable ways. Forewarned is forearmed.

— Jonathan Burton

INVESTING NEWS & TRENDS
The bull market is aging quickly, which means more volatility ahead

Every stock market investor should now consider a sensible strategy.

The bull market is aging quickly, which means more volatility ahead

Stock investors have yet to grasp the long-term implications of mind-boggling budget deficits

Once it sinks in that government debt problems are here to stay, the rumblings of the past couple of weeks will be only the beginning, writes Howard R. Gold.

Stock investors have yet to grasp the long-term implications of mind-boggling budget deficits

Here’s the really bad news: Only half of Americans own stocks

And the wealthiest among us own 81% of their value.

Here’s the really bad news: Only half of Americans own stocks

Why ETFs can’t be blamed for the correction or volatility in stocks

The U.S. stock market suffered its worst week in nearly two years last week, with major indexes dropping into correction territory for the first time in about two years. Was the phenomenal popularity of exchange-traded funds a contributing factor to the weakness or the scale of the decline?

Why ETFs can’t be blamed for the correction or volatility in stocks

Why commodities and gold won’t protect you from inflation’s punch

Traditional inflation hedges fail to live up to their reputation, writes Mark Hulbert.

Why commodities and gold won’t protect you from inflation’s punch

Here’s the problem with using investment apps when the markets are volatile

Apps like Acorns and Stash can be great learning tools, but they may inadvertently encourage people to overreact.

Here’s the problem with using investment apps when the markets are volatile

Blame machines for the stock market’s wild swings, but the response is all on you

When “buy the dip” morphs into “sell the rip.”

Blame machines for the stock market’s wild swings, but the response is all on you

Five reasons not to panic over the stock market rollercoaster

U.S. and global economic growth, solid corporate earnings, stable inflation and historically low interest rates are still very much with us.

Five reasons not to panic over the stock market rollercoaster

Keep cash on the sidelines because another hit is coming, warns fund manager

Naeimi, despite last week’s sharp drop, says he’s keeping most of his powder dry as he waits for lower prices next month.

Keep cash on the sidelines because another hit is coming, warns fund manager

Don’t throw out these Teflon stocks as you flee the market

Our call of the day says look at tech stocks, which have rebounded nicely from last week’s meltdown and may be ready to hold up against any further hiccups this market throws at investors.

Don’t throw out these Teflon stocks as you flee the market

Number of fund managers who see the economy in its late cycle is at a 10-year high

The recent turbulence on Wall Street, which pushed the U.S. stock market into its first correction in about two years, seems to have soured fund managers on where the economy may be headed.

Number of fund managers who see the economy in its late cycle is at a 10-year high

This might be the time when you can finally get quality stocks on sale

Investors who’ve been sitting on the sidelines may want to make small, regular investments. By Phil van Doorn.

This might be the time when you can finally get quality stocks on sale

This is the salary you need to be truly happy

Psychologists analyzed data from over 1.7 million people in 164 countries.

This is the salary you need to be truly happy

Jackie Mason: How not to be an idiot about money

Jackie Mason sat down with MarketWatch to discuss exactly how money can actually make us miserable.

Jackie Mason: How not to be an idiot about money

Here’s how much money you need to last for your entire life

Here’s why 80% of Americans say they don’t know what they actually need to make their cash last for a lifetime.

Here’s how much money you need to last for your entire life

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