Sunday, June 23, 2013

The Ugliness is Beginning

It looks like the most ever anticipated correction is going to get worse this week.  First, this is the end of Q2 and fund managers will be rebalancing their portfolios.  This will cause further selling of down stocks.  Second, interest rates are rising due to the likelihood of the Fed tapering bond purchases.  This will cause a further exodus from bond funds. Third, the end of QE is coming under a new Fed chair.  This will cause high uncertainty for the stock market since the outcome is expected to be bad.  Fourth, I put funds into the stock market last week.  This will cause the market to fall further :-)

I expect this week to be very painful for long investors.  And I expect the decline will lead to a great buying opportunity.

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.

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