Currently, our investments are mostly in cash, except for my company stock and company stock options. I'm still waiting for a big market downturn, which I thought would happen in the summer of 2011 To me, the market is way underestimating the the downside risk. Let me count the issues:
- Congressional Super Committee deadlock
- Growing U.S. deficit, debt, and entitlements
- 9% unemployment and lack of hiring
- Higher tax rates inevitable
- Local government bankruptcies
- Housing non-recovery
- Bank exposure to sovereign debt crisis
- Increasing student loan debt
- Fed policy of low interest rates
- Inflation inevitable
- Continuing economic uncertainty
- Lack of leadership by the political class
So for now, we will continue to stay on the sidelines waiting for the (inevitable) market decline to happen.
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This is not financial or investing advice. Please consult a professional advisor.
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