As more investors
get into the market because times are getting better, is typically the time to
be getting out of the market.
What we have to
understand as investors, is that there’s really no reason for stocks to be up
as much as they are this year. (Except that the Fed has created an environment in
which stocks are the best opportunity, and an economic indicator housing, is
improving).
You got to look and
find out why? Where’s the growth in the economy, earnings are starting to condense
with expectations being lowered.
Be very very
cautious, but do not pullout of stocks. Today we have a risk on risk on off environment,
with a very high chance we can see a little bit of pullback later on.
The catalyst to pull
down the market is going to be about news. Remember back in 2008, one of the
problems we had was debt in the U.S.
and debt in Europe . The debt in both has only gotten
worse, not better.
Were not out of the
woods to the debt problem and where this country and especially the developed
countries are going. This is a major problem, which we cannot forget.
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