- Due to bad earnings guidance, market is finding difficult to push higher
- Election uncertainty is driving volatility higher
- Debt ceiling issue yet to be resolved
In short we may see lot of zig-zag action until election results are out. To add more pain congress has yet to decide on debt ceiling problem which could drive markets further lower.
What does it mean for long term Investments?
- 401K/IRA - It is wise to stay out of markets in money market fund or cash until another better opportunity comes along
- Stocks/ETFs - Its time to get out of stocks and bull etfs and look for opportunities to get into bear etfs. However DO NOT forget to have STOP LIMIT in place.
Stay alert and protect your capital...