Today's Market
by Dr Invest
Well, the test is finally here. Moving into a new earning season, will we see the continued corporate profits or will we see deteriorating corporate income. Will we continue to see a decline in unemployment or will employment remain flat? We can only speculate at this time whether we will see a continued rise or a coming decline in stock prices, but both world markets and the U.S. market seem to be slowing down.
We have been told by the Federal Reserve that the economy is rebounding and investors are relying on this fact. Certainly, with the manipulation by the Federal Reserve there are no longer characteristic expectations from the market. The STOCK ALMANAC is almost useless and all predictable stock patterns have become entirely unpredictable in the light of increased volatility.
Looking at the stock averages below, we see a poor chance of stock gains in August and September. July is half finished and while the S&P is reaching for new highs there seems to be some caution signs ahead.
At this time, I remain largely in a cash position. I am holding small positions in TIP and MBB but I am waiting to see if these positions decline further before selling. Though market expectations are for unlimited gains, I remain uneasy with the increased market volatility and wait for a 20% to 30% decline in the market before reinvesting. This decline could begin at anytime, but is most likely between January and June of 2014. Nearby triggers are budget fights this fall, continued conflicts in the Middle East, and increased costs from the taxation and the implementation of Obamacare.
You can't hardly remain out of the market, but you can't hardly get into the market because of the volatility. I would rather lose my opportunity to make 15% now, than to lose 40% later. So I'm setting on the sidelines until October and then considering the climate at that time.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
by Dr InvestWell, the test is finally here. Moving into a new earning season, will we see the continued corporate profits or will we see deteriorating corporate income. Will we continue to see a decline in unemployment or will employment remain flat? We can only speculate at this time whether we will see a continued rise or a coming decline in stock prices, but both world markets and the U.S. market seem to be slowing down.
We have been told by the Federal Reserve that the economy is rebounding and investors are relying on this fact. Certainly, with the manipulation by the Federal Reserve there are no longer characteristic expectations from the market. The STOCK ALMANAC is almost useless and all predictable stock patterns have become entirely unpredictable in the light of increased volatility.
Looking at the stock averages below, we see a poor chance of stock gains in August and September. July is half finished and while the S&P is reaching for new highs there seems to be some caution signs ahead.
At this time, I remain largely in a cash position. I am holding small positions in TIP and MBB but I am waiting to see if these positions decline further before selling. Though market expectations are for unlimited gains, I remain uneasy with the increased market volatility and wait for a 20% to 30% decline in the market before reinvesting. This decline could begin at anytime, but is most likely between January and June of 2014. Nearby triggers are budget fights this fall, continued conflicts in the Middle East, and increased costs from the taxation and the implementation of Obamacare.
You can't hardly remain out of the market, but you can't hardly get into the market because of the volatility. I would rather lose my opportunity to make 15% now, than to lose 40% later. So I'm setting on the sidelines until October and then considering the climate at that time.
(Note: the above information is for entertainment purposes only and not to be used as investment advice.)
No comments:
Post a Comment