Get Out Before a February Correction
U.S. stocks have been outperforming as of late, rallying since late August, with one shallow pullback around Thanksgiving. And while some emerging market stocks have pulled back, with the iShares MSCI Emerging Markets Index (NYSE: EEM) down a relatively modest 1.6% year-to-date, we have consistently made some great profits in emerging markets ranging from China to Brazil, Singapore to Chile, and India to Indonesia.
However, as we head into February — historically the second-weakest month for the U.S. market — we are ripe for a correction. And not just in U.S. stocks. We’ve seen some weakening in select emerging markets due to inflationary pressures that have caused a policy response. Although I’m bullish on emerging market stocks, I do believe that there are certain global stocks that are not worth hanging on to. In the immediate-term, I think we could continue seeing a wider sell-off in select markets as traders take profits and rotate capital into what they perceive to be less-risky assets. Today, I’d like to share six global stocks to sell before the February correction.