Stock-picking gains traction as volatility looms - MarketWatch

Source:   Stock-picking gains traction as volatility looms - MarketWatch

Published: Sept 7, 2014 6:01 a.m. ET




By WALLACE WITKOWSKI

REPORTER


SAN FRANCISCO (MarketWatch) — As the S&P 500 continues to move higher into uncharted territory, strategists are suggesting a less broad-based approach when it comes to stocks — some as a cautionary measure, others out of a sense that returns are growing stale.

Even though the S&P 500 closed at a record high Friday, gains across the board were slight with both the Dow Jones Industrial Average DJIA, +0.40% and S&P 500 Index SPX, +0.50% up 0.2%, and the Nasdaq Composite Index COMP, +0.45% finishing up less than 0.1%.

If those gains are already showing signs of fatigue, then upcoming headwinds may blow the broader stock market off course. In October, the Fed will end its bond purchase program. Not only will that increase speculation of when in 2015 the Fed will hike interest rates but this will all happen around the midterm elections, when markets are traditionally volatile.

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