You’ve been following the news and are understanding of the investor risk. You never blindly “just follow the trend” in the stock market because that only works for Daytraders. You’ve judiciously pruned you account of losers, and have taken some hard-won profits in the winners. Your value-oriented approach has you buying fractional positions in attractive franchises and has kept you out of the more risky high-fliers.
Market participants have had weeks and months in which to look behind the day to day market action when examining the intermediate to long-term picture of the worlds financial situation and the state of The System.
So now we wait. Wait for more printing as the economic numbers deteriorate. Wait for the inevitable short covering pop at the end of the day that signals the All Clear. Wait for the video of the Europeans waiting in line for their money at the bank. Wait for the Communist Chinese to save the Free World. Wait to hear that your investment position, whatever it may be, is affirmed by the talking heads on biz-TV.
Or you could just be in cash watching the shitshow from the sidelines and getting your capital ready.
2 Responses to Examine It All Very Carefully
If NFP misses you would think market would rally on the now “guaranteed” intervention. If NFP is close, then market will sell off further on no wiggle room.
Even though oil is sub 90 I dont think Ben can print yet, and besides not everyone is squirming – yet.
I still think we go lower from here.
Scott, you are right on target as usual. What’s your view on “the market is always six months ahead”? If true, then isn’t it obvious that this decline is not just about Europe or even China but truly about the 2013 taxageddon and ObummerCare asphyxiation?