It appears the market may skip over the boring and cumbersome “consolidation” phase and go straight up again. If you go with the concept that “it’s all a conspiracy” and “mutual fund madness STARTS NOT,” it’s easy to understand why we are melting higher. Year to date, the dollar is up and our markets are outperforming. That’s right, the U.S. markets are doing better than most foreign markets and our dollar hasn’t cratered. Naturally, it’s only a matter of time before the dollar really nosedives. However, as of now, the dollar has been a non-event for 2010.
Having said that, from an investors stand-point, it makes little sense to hold a lot of cash here, ahead of “window dressing” season. Fund managers need to own stocks and they need to own them now. Hence, the race to position correctly should be your priority.
Bottom line: I will likely put a lot of cash back to work today. Ebb and flow with the emotions of the market: that’s what I do.
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