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Stocks May Be Headed For a Rude Fall in October

Maria Bartiromo / CNBC: The focus on fundamentals is about to begin.

For the last three months, investors have been ignoring the weak economic backdrop and plowing money into stocks because of the cheap money swirling from central banks around the world. Investors are searching for yield in an environment of rock bottom rates.

But judgment day is coming.

The fourth quarter has begun and the third-quarter earnings will start to flow, giving us a window on just how anemic the last three months have been in the real economy. (Read More: Stocks End Lower, but Log Best Third Quarter Since 2010.)

That doesn’t mean the chasing of the highly volatile big performers will let up. But it does mean selectivity when buying stocks will be more important than ever. And the risks of a big sell-off are higher.

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