- Market wants to know who will win US election and hence will wait for a clear winner - If republicans win then market may rally but the rally won't last for long and if democratic win then market will drift lower
- US debt ceiling - After election, we might witness repeat of August 2011 volatility as congress is yet to decide on our fiscal cliff and No action equates to massive cuts and tax increases across the board
- Euro-zone debt issue is NOT resolved and any negative news could bring jitters back to life
What does it mean for our Investments?
- 401K - Remain in capital preservation mode by parking you money in money market fund or cash
- Stocks/ETFs - Be cautious and if possible take profits, have hard STOP LIMIT to avoid losses
Stay out of market until next opportunity shows up...