Stocks enjoyed a respite from what some see as a bubble in pessimism, and that sudden turn should be unnerving to a fast-growing crowd of individual investors: those who have recently raced into ultrasafe holdings like U.S. government bonds.
The market has been up and down for the past few months, lacking a clear sense of direction. Is this the new normal, or just a pause in an uptrend? Technically, a strong case can be made that it is the latter -- a typical retrace in a longer bullish trend.
Stocks rallied for a third day, driven by encouraging second-quarter earnings. But there are increasing signs that profit growth may disappoint. In the face of those warning signs, what should investors do?
The recent seesaw activity in the stock market has prompted some analysts to suggest investors may be overreacting to financial news. After marching more than 115 points higher on Tuesday, the Dow Jones Industrial average fell more than 122 points in Wednesday's market sell-off.