After reading a several articles, I've decided the best strategy is for us to "sell in May," even though it's already early June. Here are some of the articles I read:
Not Too Late To Sell in May and Go Away
You Can Still Sell in May and Go Away
US Economy Hits Soft Patch But Some See It as 'Temporary'
In addition, I believe most goverment actions (e.g. QE3, mortgage modifications, etc.) have a higher probability of a negative impact on economy which will result in a stock market decline.
I just hope I'm not too late when I exit the market this week.
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2 comments:
How about inflation? If you sell everything, were would you keep your money?
Generally I do not believe is worsening, Asian economies are fueling and middle class there is hungry for "quality western goods", so not to worry. At least for the time being.
@ Financial Independence,
For me, cash that's earning .05% is better than stocks losing 10%, even if there is inflation.
Also, I believe all the bailout programs to date have been for special interests instead of helping the broader economy. This brief boost to economy is fading and the government is out of money to spend on programs that could really help.
To me, it feels like 2008 all over again, with government denying any issues. Remember, when the stimulus was projected to keep unemployment below 8%? No reason the believe the government is right this time when it says the economy is still recovering.
We have moved to over 95% in cash or cash equivalents.
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