- Although we keep hearing FED taper talks, remember its all noise and real action will happen ONLY after the decision is made
- NYSE margin debt levels are dangerously high, last two times it was that high (2000 & 2008), market dropped by 50% in months ahead along with a recession
- Although we hear in news that housing is recovering, current home sales for last month are down
- First Quarter GDP was revised down and same can be expected for 2nd Quarter as well
What does it mean for our Investments?
- 401K/IRA - By now we should be in money market fund or stable value fund or cash. If you are still invested in equity funds then wait for bounce to mature and sell in the bounce.
- Stocks/ETFs - Be selective in your stock picks as some of them are setting up nicely, however do not forget STOP LIMIT.
Market appears to be bouncing back, however be careful...