SPONSORED — The adage, “cash is king” could be a whole lot more applicable in today’s market than in prior years. For stock investors, recent market volatility might be causing some uncertainty about keeping retirement funds in the market.

This is understandable when you consider the Aug. 24 market crash that Fortune referred to as “one of the biggest one-day declines in recent memory.” In one trading day, the market fell more than 1,000 points at its lowest. While many analysts suggest the recent financial crisis is over, there are several factors continuing to weigh down the market.

QE3 is no more

Last year, the Federal Reserve voted to end QE3, its bond-buying stimulus program. Throughout the stimulus program, the Fed pumped money into the economy, a huge portion of which flowed through the banks and into the stock market. This in turn drove up stock prices.

“This is the primary reason Wall Street has done so well since 2009 despite the fact that Main Street has suffered from very slow growth,” said Ken Peterson of Online Trading Academy.

Without the stimulus program boosting the market, it could remain sluggish for a while.

Commodity prices are low

While Main Street might enjoy a cut in the cost of commodities, this doesn’t bode well for investors or the economy at large. Consider the price of oil, a “pillar of the global economy” according to Zacks Finance, has fallen drastically in the past year. When the cost of oil rises, so do the costs of other commodities, due to its inflationary effect. The inverse is also true when oil prices fall. Subsequently so do the prices of countless other commodities. Stocks are a claim on real assets, so the market responds accordingly when commodity prices are down.

It’s not just about oil either. Gold, silver and platinum are now at five- to eight-year lows, as are basic materials, signaling the construction and industrial sectors are weak.

Interest rates will rise

Last year, the Fed promised to keep rates near 0 percent for a “considerable time,” but now it is becoming more and more likely that rates will rise sooner rather than later. This will cause a considerable strain on the market, since low rates encouraged stock market investments in the past.

“The market is worried about increases in interest rates,” Peterson said. “Investors understand when interest rates rise, the money that would normally be invested in treasuries or CDs will begin to flow out of the markets, putting downward pressure on stock prices.”

In April, Stanley Fischer, vice-chair of the Federal Reserve promised that interest rates will rise from their current 0.25 percent to as high as 4 percent over the next few years.

The dollar isn’t as strong as it seems

The value of the U.S. dollar has been surging over the past couple of years. That said, this isn’t due to the fact that the dollar is worth more. It’s a reflection of weakened foreign currencies. For example, the Canadian dollar has responded to falling commodity prices by becoming weaker, which has pushed the value of the U.S. dollar in comparison. The dollar’s surge says more about weak global economies than about the current U.S. market.

Boomers aren’t booming

Baby boomers represent the largest generation in the American population, comprising approximately 65.2 million people according to the Population Reference Bureau. While boomers contributed heavily to the economy through investments in the 1980s and 1990s, this aging group is now at or beyond retirement age. This means they are no longer investing in the market, but instead cashing out their retirement funds. While Generations X, Generation Y and millennials will continue to invest, these are much smaller generations by population.

While cash could burn a hole in your pocket, there are plenty of reasons to believe it may reign as “king” for a while to come.

What you can do

Luckily you can prepare yourself to navigate the U.S. market. Online Trading Academy teaches a rule-based strategy that takes the emotions out of trading. Let’s face it, we all have the tendency to be driven by fear and greed when it comes to trading in the markets.

Trading involves risk and will also result in losses, but applying the appropriate risk management means that gains are higher than the losses if the rules are followed.

Students receive ongoing support in the form of online learning, live instructor-led trading sessions, accelerated solution programs for alumni, and one-on-one student support. These are just some of the resources students can take advantage of at Online Trading Academy.

Students will become part of a community of traders where the education is ongoing. It doesn’t end when the class ends.

To learn more about Online Trading Academy, or view classes in your area, please visit their website.