The stock market has only fallen a few percentage points in the past week, but the backdrop for stocks seems to have changed considerably. Coming off of the momentum-driven, Fed-fueled market action of 2013, investors now find themselves in an environment in which risk has moved back to center stage, and many are looking for stocks to sell.
A series of tepid earnings reports, the growing instability in China, and the collapse in several emerging market currencies are among the issues that have disrupted the market so far in 2014. Investors who witnessed the emerging markets crises in 1994 and 1998 know that although much has changed in the past 15 years, trouble in emerging world has a way of landing on our doorstep in dramatic fashion.
As a result, the name of the game is now protecting against downside rather than taking on added risk in search of incremental returns. Investors need to keep a close eye on their holdings to see what stocks might be particularly vulnerable if the market continues to trend lower in the weeks ahead.
With this in mind, here are five stocks to sell before the next adverse headline hits the tape: