Higher But for How long

The Dow is currently trading above 10,200 and the panic trade from earlier this year has evolved into a “greed” one. Investors questioning the wisdom of owning equities are now wondering why they are not 100% in the stock market. We even got hit with the question “what is margin and is it a good idea” last week.
As tempting as it is to bump up stock exposure and chase the market, we believe that investors should stick to their knitting and allocated assets according to their own needs and not some televsion guest’s best guesses/predictions/astrology readings.
Explore alternatives to CDs - FOR SURE.
Get international exposure- DEFINITELY.
Own solid companies - YES.
But most imperatively, match what you are trying to accomplish investmentwise with your investments and risk tolerance.

This morning CNBC trotted out two very bearish opinions and then two very bullish ones. We have never seen such a disparity in opinion - this may be a good thing but the wide ranges of market projections is disconcerting. We have heard Dow 15,000 and Dow 4,000 in the last week. That’s what makes a market and some of the reason that we view CNBC as both an informational source as well as an entertainment and ratings driving channel!

This entry was posted on Tuesday, November 10th, 2009 at 10:51 am and is filed under Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.