Today's Market
by Dr Invest

Many questions are being asked today about the direction of the market. There really is no magic here in market analysis. Common sense tells you that the market cannot continue to climb forever, there has to be a rest that comes to the market. Rather than admitting that the market will decline, financial advisers and brokers just can't come to a place of saying, market decline. In this mix is thrown more political wrangling and a European recession. We have the sequester followed by the controversy over setting a cap on spending.  For the immediate future, things don't look very hopeful.

MOMENTARY DOWNTREND

What the facts are telling me is to stay out of the market. If you have followed this blog, you will note that I had invested in WMT, saw a slowdown, then a marginal recovery where I sold WMT at a minimal profit. For all the talk of gains in the market, there has been little substance. Volatility and broad market swings continue to be a pest to investors. Continued Fed stimulus moves stock prices higher without any real GDP growth. With 40 Billion added monthly by the Fed, the outcome can only be future inflation, a devalued dollar, and stagnant growth. More conservative economists are predicting a 10% to 20% pull back in the economy and then more enthusiastic stock buying over the summer months.

All that I can see in the immediate future is continued high risk and declining stock prices. Until the end of March and possibly into April, I don't see real buying opportunities. Even gold prices have been miserable, falling some 9% to 10%. I can't help but believe that the government is manipulating gold prices by the on-going devaluation of the dollar.

Keep your stop sell in place. You determine how much you are willing to lose. Wait for the right time to invest. Don't expect the stock market to continue into higher highs.

VIDEOS WORTH YOUR VIEWING

Called, "The Bubble Film", some of the great investors give their views on the present market condition. You can listen to excerpts on YOUTUBE. Here are some links:

Marc Faber

Jim Rogers

Ron Paul

Do your own search on Youtube.com for "The Bubble Film". This film gives you insights into the mind of some of the world's greatest investors and economists.

(note: the above information is for entertainment purposes only and not to be used as investment advice.)