The S&P 500 (SNPINDEX: ^GSPC) is up by nearly 26% over the past year, as of this writing.
Despite the record-breaking performance, however, many investors are feeling nervous about the stock market
The Fear and Greed Index measures investor sentiment on a scale from 0 to 100, with lower numbers indicating “fear” and higher signalling “greed.” The metric dropped from 65 one month ago to 34 as of this writing, firmly in the “fear” category. Also, nearly 48% of U.S. investors believe stock prices will be lower six months from now, according to the most recent weekly survey from the American Association of Individual Investors, with only 30% optimistic that the market will continue climbing. While it’s impossible to say where the stock market is headed in the short term, there’s one crucial move all investors should make right now.
The move that will make or break your portfolio If a market downturn is looming, choosing the right stocks is more important than ever. Many stocks have surged as the market reaches new all-time highs, but a soaring stock price doesn’t always equate to a healthy investment. Many stocks are overvalued right now, meaning their prices no longer reflect their underlying business fundamentals.