Bonds Can Help Stock Investors Monitor Correction Risk - Seeking Alpha

Bonds Can Help Stock Investors Monitor Correction Risk - Seeking Alpha

Here is another outstanding article by Chris Ciovacco about stock market risk.  He compares bonds to stocks through the AGG:$SPX chart and proves that this method works by showing charts of 2011 and 2007 declines.  This is a great way to monitor whether we should be in or out of stocks.

Chris went on to explain that his model called for reduced exposure to stocks, and his company sold their position in XLE, the energy ETF. He sold XLE because it was his weakest holding, and that is how he exits the stock market incrementally.  This is a great article and excellent plan to follow during uncertain times in the market.