So here's why I'm still holding back;
- Low volume market. The market indices are rising on low volumes. That mean very little demand is driving the market up. Once this demand is gone the market will have difficulty rising. For reference, investors pulled $137 billion from stock mutual funds during June 2011 through January 2012,
- Negative event potential. The market is one major negative event from a significant decline. Possibilities included a sovereign default in Europe, spiking oil prices, and conflict with Iran, Syria or other middle east country.
- Low business commitment. Businesses are still hoarding cash and holding back on hiring. Many businesses have increased profits through cost cutting and are using overtime instead of hiring. If businesses thought the economy was going to get better soon, there would be more investment and hiring.
For more on New Beginnings, check back every Sunday for a new segment.
This is not financial advice. Please consult a professional advisor.
Copyright © 2012 Achievement Catalyst, LLC