Today's Market 
by Dr. Invest

It looks like it's good to go, or maybe not. Some of my favorite stocks lurched foward with gains of 2 to 4%. I asked myself, "Now why didn't you have the courage to get back into the market?"

I want you to think of this like seeing a $100 bill in a busy street. You already know that when people leave their work, the street is going to be filled with cars. You also know that at mid-afternoon, everybody will be in their offices and few cars will be on the street. Your chances getting that $100 bill without injury is far better at 2:00 in the afternoon, than at 5:00, when everyone is in a rush to drive home. The same is true of the stock market. When someone sees an opportunity to get an easy $100 bill, they may take that chance when the risks are high. Yes, they might get hit by on-coming traffic and it may cost them thousands in medical bills, but to them the reward is greater than the risk.

There are great opportunities to make some real money because the market had dropped 10%, but to make that money is just too risky because we don't know what will happen next week. If you invest $10,000 and make 10%, you will have $11,000, but if you lose 10%, you will have $9,000. To regain your original investment of $10,000, you have to make $1,000 which requires a return of 11.5% off of $9,000. What I am saying is "Don't get back into the market now!". The odds are not in your favor.

Look, the DOW was all over the charts today. This is the sign of turbulent water, get out! As I said in the past blog, August and September have traditionally been low performing for stocks. Using the forumula GNP -(minus) NATIONAL DEBT = GROWTH, the U.S. is floundering. Businesses typcially reflect the national formula in stock price. (The exception are business positioned in other countries.) The dilemma is that both the U.S. and the INTERNATIONAL GOVERNMENTS are floundering economically. None of these government have declared bankruptcy, but all are under REORGANIZATION. The E.U. has promised to LEND MONEY so the international governments can pay their debts (like Greece, Italy, and Spain). The S&P has not lowered the U.S. bond rating at this time, but threatens that unless the U.S. gets their debt under control, they will reduce the rating for the U.S. And the U.S. continues borrowing money from China to prop up the U.S. failing economy. Businesses want to see how all of this RE-ORGANIZATION is going to work out before investing more money in a failed economic system.

The Bank of New York Mellon, slaped large clients with charges for holding cash, said the Wall Street Journal. These "large clients" are waiting for a turn-around in the market. Investors are unsure whether we will turn-around or turn-down.

Let me repeat myself, "As we go into this weekend, with a mixed result in stock returns, it would be best if you remained out of the market." As the market begins next week there could be a short rally, but I am expecting the market to swing wildly for the next two months and then settle back down. Early to mid October will be your target for investing.

If you have plenty money to loose, there are some real buys out there; but be warned, the traffic is heavy and it is not yet time to push the GO BUTTON.

(Note: The above article is not to be considered financial advice and is soley for entertainment purposes)