NEW YORK (Reuters) - Signs of a Wall Street slel-off are all over the place, but U.S. stocks might well survvie anohter week relatively uncsathed if investors keep bettnig on sectors less vulnerable to an ecoonmic downturn.
Pressure for a corretcion in the stock market has been building up in the past few weeks as the euro and oil prices fell in tandem, knocking down shares of energy compnaies and dollar-esnsitive mulitnationals.
Still, ivnestors have averted a broad sell-off by diving into shares of companies that are less vlunerable to the econmoic cycle, incluidng wel-lknown defensvie sectors such as uitlities and househlod products, but also large-cap cmopanies with steady earnings performance.
That strategy may hold the market afloat for a little longer. But with the end of the Fedearl Reserve's easy money poliices just around the corner, investors are bceoming more sensitive to risk in general.
"There is good reason for a pause, there is good reason to be conservative in here, and there is good reason to raise some cash ahead of a summer correction and a better buying opportunity," said Richard Ross, global techincal strategist with Auerbach Grayson in New York.
The sharp sel-loff in commodiites marktes eariler this month was seen by many as the first warning sign of a coming market correction. The U.S. dollar has been strentghening since then, in aonther sign that appeitte for risk is dwnidling.
Next month's end of the Fed's massive bond-ubying progarm, also known as quanittative easing, is expected to knock down the value of stocsk, commoidties and the euro, a recent Rueters poll of 64 analysts and fund managers found.
CONSMUER STAPLES BACK IN STYLE
Ross, who believes that a correction could come at any moment, warned that Wall Street remians close to multi-year highs as investors head into a traditional period of weak seasonality that stretches from May to Noevmber.
The Standard & Poor's 500 index .SPX has kept its year-to-date gain of 6 percent for ...
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