Hello, after a recess from May 4, 2010 (stop and get out warning) I gave- a lucky guess. Well, I am back. Not saying, I am not suggesting to go back in the market, but back writing again.
What's ahead? Anyone guess at this point. Market has been down since May, pick up a bit in the Summer and for the last few weeks. Two points:
1. Short term instruments, CD's etc aren't going to make you rich or keep up with inflation, so it appears that the only game in town is dividend paying stocks and recession proof stocks...that is my thinking.
2. Corporations are making record profits, at least some, so going forward it will be hard to beat expectations, given this slugish economy and high unmeployment.
3. Large deficits may prompt politicians to raise taxes and given that the consumer account for more than 70 percent of the economic activity we are in a dilema.
4. Capital gains taxes are lower this year and some investors may want to take advantage of that to take profits when they begin rebalancing their portfolios.
We are in a crossroads here of balancing opossing forces. I believe that there is a strong possibility that we may be heading lower again. But, noone knows for sure.
We got out of: GT, ABB, Nok, SIRI, RAD, CDII, and INSM back in May 4, 2010. Some are cheap at this point in the game, but may get cheaper, hard to know for sure.
I will wait another month or so. WE MAY NOT GO BACK TO THE SAME STOCKS LISTED HERE.
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