Stocks continued to chalk up substantial gains on Tuesday with benchmarks falling short of new records. This is in keeping with the tone of a rally which is nearly seven and a half years old and is showing no sign of dying out.
However, the investment banking arm of a major U.S. bank thinks that the market may be facing a correction sooner rather than later. One of the major reasons for such a correction could be the uncertainty over the impending presidential election.
Though it is difficult to predict whether this will indeed happen, it may be a good idea to protect the gains you’ve made recently. The best way to do this would be to add low beta stocks to your portfolio. Beta measures the tendency of a stock’s returns to respond to market swings.