The three-day selloff was a stark reminder that stocks are not bulletproof. One catalyst in this case was U.S. inflation spiking to a 13-year peak. Institutional investors do not take kindly to inflation and they sold.
Then stocks rebounded over the week’s final two trading sessions, recovering much of the earlier losses and bringing the major indexes above their 50-day moving averages.
Keep in mind the main goal of investors and traders is to reduce or limit risk. The second goal is to make profits. After a wild week and an unstable market, here are a six ways to make sure your investment portfolio is positioned appropriately to the market’s moves:
1. If indexes fall below their moving averages, take action: Traders and investors alike should watch moving averages, especially the 50-, 100-, and 200-day. When the indexes were sliding a few days ago, the S&P 500
charting-symbol=”INDEX/US/S&P US/SPX” class=”qt-chip negative” href=”https://www.marketwatch.com/investing/index/SPX?mod=MW_story_quote”>SPX,
for example, did…