“SAN FRANCISCO (MarketWatch) — With U.S. stocks struggling to break new ground and a rise in Treasury yields upsetting the bond market, money managers are recommending a mix of proven blue-chips and exchange-traded products to weather the dicey summer months.
Investors have a dilemma about where to put money. For awhile defensive stocks were a safe place to park; that momentum has rotated into cyclicals, which gained nominal all-time highs in May.
Now, well into the stock market’s weakest half of the year and the looming specter of the Federal Reserve tapering its quantitative easing program, the strength of both the Dow Jones Industrial AverageDJIA +0.65% and the Standard & Poor’s 500 Index SPX +0.51% is being questioned.
Meanwhile, market volatility, which has been fairly docile, is climbing. The CBOE Volatility Index VIX -0.83% , or so-called fear index, is still below multi-year averages, but the increased activity typically signals a change in market leadership.
With this in mind, MarketWatch polled some seasoned investors for ideas on how to navigate the summer months if the market bears come out of hibernation.
