Wall St Week Ahead Investors grow wary as stocks hit new highs

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Investors are girding their portfolios for potential stock market volatility, even as equities hover near fresh highs after logging seven straight months of gains.

are the S&P 500's best-performing sector so far this quarter with a 10.2% gain. They have been followed by other popular destinations for nervous investors, including real estate and healthcare.

Meanwhile, the Japanese yen and Swiss franc - viewed as havens during uncertain times - have outperformed most G10 currencies this quarter. Ultra-low yields on fixed income have left few alternatives to equities, and betting against stocks has been a disastrous strategy in the last year-and-a-half. Concerns over equity valuations have prompted Grecsek to take profits in some of his equity positions and shift some money into non-U.S. stocks, including emerging markets.

, whose wild ride this year put a spotlight on retail investors' mania for so-called meme stocks that some say is one sign of irrational exuberance in markets. Some of the flows into defensive sectors may have more to do with investors hunting for yield rather than worries over an impending market crash.sports a yield of about 3%, while the yield on the benchmark U.S. 10-year Treasury note stood at around 1.33% on Friday.

 

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