Top News Story Of The Day – “Investment experts agree: Get over your fear and get back into stocks” from the front page of USA Today’s Money Section.
This could be one of the best signals anyone in the market can look for. The “dumb money” indicator as it’s known on wall street is…..drum-roll please: You and I, the individual investor. Anyone paying attention to consensus is destined for failure.
The question is, what should you do?
Considering we told our subscribers to purchase TLT earlier this week, and have been in the dollar for a couple of months now, you might want to listen.
Get out of stocks! There will be an opportunity to buy, but now is not that time. The idea is to buy low and sell high. Ask yourself, is now that time? Stocks are at a two year high.
Take an inventory of what has been happening over the last few weeks.
1. China is down hard
2. Everyone is terrified of the bond market
3. Municipal Bonds are melting away (Municipalities and even states can’t pay their bills)
4. Gold and Silver is down from the highs
5. Goldman Sachs is down
6. Gold stocks are down
7. Many European countries look like Lehman Brothers just before it imploded, and continue to be downgraded by the famed rating agencies.
Does anyone other than me see anything peculiar with this picture? Sure, the market can continue up on the Bernanke bubble theory, but I’m just pointing out the obvious and likely scenario. Just what type of “investment experts” are they, and what in the world are they looking at different from what I am?
Invest with Vigilance.