Moroney cautions that earnings disappointments by high-flying techs and biotechs could trigger sharp declines in those stocks--a thought echoed by the triumvirate of editors at Wall Street Winners.
The index is set to replace the Dow average on April 8 as the index whose action will be monitored for the sharp swings that trigger "circuit breakers" halting all U.S. stock trading.
WSJ: S&P 500 Milestone Has More Meaning Than Dow Record for Many
Fund managers are rethinking their portfolios in the belief that "QE3" -- the Federal Reserve's third round of quantitative easing -- will weaken the dollar and trigger sharp gains in emerging market currencies.
If they stop buying, it could trigger a sharp fall in the dollar and a jump in bond yields.
The US Congress's budget office last week warned that spending cuts and tax rises could trigger a sharp economic slowdown in 2013.
But in times of conflict investors normally rush to buy the dollar, seeing it as a safe haven, and a prolonged war could trigger a sharp reversal of its recent decline.
There is, of course, a risk that a rise in rates might instantly trigger a sharp fall on Wall Street, bringing America's economy to a grinding halt and thus harming the world too.
While an upset win by the opposition may trigger a sharp selloff on worries of policy uncertainties, a narrow victory by the ruling coalition could spark a more modest fall as investors have already priced in such an outcome, said Pong Teng Sew, head of research at Inter Pacific Securities.
WSJ: Malaysians Turn Out in Large Numbers in Tight, Historic Election
If an unsustainable rise in asset prices goes into sharp reverse, this can trigger financial instability.
Analysts caution that a sharp rise in prices would likely trigger a return of strict controls by the government.
The University of Kansas study suggests a sharp drop-off in the amount of daylight in New York in September might trigger seasonal affective disorder and make some traders more risk-averse.
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