Quest For Quality

Is the market at a crossroad? It’s amazing how sentiment has flip-flopped in the last 36-hours with the VIX, known as the market’s “fear meter”, gaining ground. When the “fear meter” rises, there’s less confidence that the market will go up. And the market has been under pressure. On Monday, the market posted its worst single-day loss in two months.

In the past three months, we have enjoyed nice gains with the S&P 500 Index gaining 8%, Dow Industrials up 7% and NASDAQ - the biggest winner - rising 13%. But that may disappear according to

what the VIX is telling us

. For investors, that means growing skepticism that the sharp rally we saw this spring may be in jeopardy.

So what should you do? Should you jump on the high-beta bandwagon or put money in bonds?

Standard & Poor’s Chief Investment Strategist Sam Stovall said on the Closing Bell investors should be on a “quest for quality.” With the view that the “S&P 500 could test the 800 level,” Stovall says consumer discretionary, consumer staples and industrial names are safe havens in the current market.

For investors looking beyond U.S. borders, Harding Loevner CIO Simon Hallet is sticking with emerging markets. Despite the risk, Hallet says there’s more bang for the buck. His pick: Brazil. The Bovespa index is up 32% this year.

Tune into our market analysis daily on Closing Bell 3.00PM ET and 4.00PM ET.

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