Get Ready for a 5%-10% Stock Market Drop

Why the market may fall 5%-10%, and what you should do to prepare

by Michael Brush
Market Watch

If you have trades on that you’ve been thinking about selling, it’s time to sell. If you have a lot of margin on, bring it down. If you have little buying power, find a way to raise some.

The reason: There’s likely going to be a significant selloff over the next two months.

Of course, making short-term market prognostications isn’t easy. Some say it’s even a fool’s errand.

It might be. But sometimes, the signals align to tilt the odds in favor of a market move. That’s where we are now. I’m not predicting the start of a bear market. I think the U.S. and global economies will hold up. So I wouldn’t sell medium-term stock positions — meaning stocks you plan on holding for a few years.

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