It is a very decent article by Brett Arends at MarketWatch.
What should we do?
* As in my previous predication, the market is still risky and it may not be our normal recovery in market cycle.
* At least for the coming year, I expect corrections of 5% are common (i.e 3 times a year instead of 2). So, accumulate cash for bargains (i.e. take profits when they're due). Should have about 30% in cash. If it does not work, it is a insurance.
Buy on value (i.e. fundamentals) and sell on momentum (i.e. a mirage).
The aging of the world population is one reason that the market will not rise. The debasement of the currency is one of my takes (in a separate post) why the market has risen so fast recently.
* PIIGS will be a problem for a long while. The politicians learn from US to spend to buy votes. When Spain and Italy's bubbles burst, we will have big problems to US as they're far bigger economies than Ireland and Greece.
(c) TonyP4 2011. Written in 7/8/11. Updated 7/8/11.
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Disclaimer: All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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