Sunday, October 07, 2012

Joining the Stock Market Rally

October: This is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February. ~ Mark Twain

Since May 2012, I've been increasing our exposure in the stock market.    I started with a long-short portfolio but due to poor results, I switched to only being long in early July 2012.   Since then, our investments have done well as the market has been on an upward trend since then.

While I don't believe the fundamentals support the market direction, I do believe the Fed and other central banks will continue to use monetary policy (i.e. quantitative easing and interest rate reductions) to create asset inflation especially for equities.  In addition, I believe politics will be focused on keeping a rising market through the 2014 elections, so that the President (likely to be Obama at this time) will get a supporting majority in Congress.

I will be talking to my financial advisors this week to invest in two managed funds.  In addition, I will continue to add to positions in our IRA accounts.  Finally, I will be exercising stock options as my company stock (hopefully) rises with the rally.

 A final note.  I believe this rally is part of a stock market bubble being created by the Feds monetary policy.  Therefore, I expect the eventual ending to be bad, but plan to ride the bubble with part of our investment accounts for the time being.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2012 Achievement Catalyst, LLC

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