With the Dow and S&P breaking through the previous highs and setting new highs, a case can be made for the market going higher. The market advance continues to be the most unloved rally. The next correction will be the most anticipated correction. However, pundits are starting to acknowledge the possibility of a continuing rally. For example, permabear Noriel Roubini acknowledges that the rally could continue another two years, before it crashes.
I'm still in the camp that a correction is only one event away, but in the meantime, this is a Goldilocks economic recovery, which is positive for the stock market. So I remain cautious about putting additional funds in equities and am using the opportunity to take some profits on some trading positions. It also appears that the market is highly overbought, which usually indicates a correction is due. So I am preparing to execute my ETF investing strategy when the correction happens.
I expect the next month will provide the answer for near term market direction.
For more on Reflections and Musings, check back every Saturday for a new segment.
This is not financial or investing advice. Please consult a professional advisor.
Copyright © 2013 Achievement Catalyst, LLC
Subscribe to My Wealth Builder
November Goals Update
4 days ago
No comments:
Post a Comment