Growth investors have benefited from the resiliency of stocks for quite some time now. The SPDR S&P 500 ETF (SPY) has traded above its 200-day moving average for 16 straight months and nearly every modest dip is bought with gusto.
However, many investors are starting to notice swirling currents beneath the surface that threaten to change the path to profits moving forward.
In 2013 the hot tickets were small-cap stocks, biotech companies and solar stocks, which all produced market-beating returns. However, the market leadership has changed dramatically in just the first three months of 2014. We are starting to see a confirmed shift to defensive areas of the market that has altered sector momentum and may perhaps even lead to more volatility.
Fortunately, there are a number of key strategies you can employ that will allow you to get out ahead of this near-term volatility and thrive as a result.