According to the article, he pointed to four signals that have put him on higher alert.
Add Mr Swanson to the list of people predicting some sort of correction or even a full blown stock market crash.
Because it’s impossible to predict if and when shares will correct, more concerning is Mr Swanson saying from these elevated levels, history suggests US investors should expect annual returns of about 3 to 4 per cent over the next decade.
What should you do?
I’m on record many times as saying investors should expect mediocre returns from the popular ASX blue chip stocks in the years ahead.
Bank shares are facing headwinds on multiple fronts. This is reflected in the 12.5 per cent fall in the Commonwealth Bank of Australia (ASX:CBA) share price so far in 2018.
Telstra (ASX:TLS) shares have problems of their own, including increased competition from Optus, Vodafone and TPG Telecom (ASX:TPM). The Telstra share price has also lost 12.5 per cent year to date in 2018.
Woolworths (ASX:WOW) shares are expensive for a company that is growing slowly and one that now pays only a modest dividend.
Diversify into growth shares and small cap shares. Find out the names here of 3 cheap and good ASX stocks to buy for 2018 and beyond.
Run a healthy cash balance, something that protects you on the downside and also gives you the firepower to buy shares if and when the share market sells off and some of your favourite shares become cheap.
Finally, don’t invest with borrowed money. As Warren Buffett has said…
“I’ve seen more people fail because of liquor and leverage — leverage being borrowed money. You really don’t need leverage in this world much. If you’re smart you’re going to make a lot of money (in the stock market) without borrowing.”
Woolworths shares don’t look cheap, but these 3 shares do…
Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.
Woolworths was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.
Find out why these 3 Cheap and Good Stocks could be better buys than Woolworths. But you better hurry… these stocks may not stay cheap for long.
See the 3 stocks
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