Is a Stock Market Correction in the Cards?

Historically high stock valuations and murky economic data point to a mean reversion. Here's how to prepare for whenever the ax falls.

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The Standard & Poor’s 500-stock index rocketed more than 15% higher through mid-April. But it’s telling that the lion’s share of the gains came in the first two months. Stocks have moved higher since the start of March, but at a much more leisurely pace with several stops in between.

Is this merely a pause en route to further gains, allowing investors to digest the strong start to the year? Or could something else be afoot?

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Charles Lewis Sizemore, CFA
Contributing Writer,

Charles Lewis Sizemore, CFA is the Chief Investment Officer of Sizemore Capital Management LLC, a registered investment advisor based in Dallas, Texas, where he specializes in dividend-focused portfolios and in building alternative allocations with minimal correlation to the stock market.