An article said
" Look for extremes in market sentiment and investing activity … and do the opposite."
I agree to some extend, especially in today's sideway market.
However, if the long-term trend is down (i.e. moving to a W-shaped recession), you want to wait longer before you move back in.
If we're heading to the same path as Japan's lost decades, you may want to wait even longer.
If we're heading to a secular bull market (not today), then waiting too long will be bad as every investor including your mother-in-law would be a genius.
What I try to say is we need to watch the market direction carefully.
Read the following link and its comments on market conditions.
http://bit.ly/JbvI6C
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