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.

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

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