prudentinvestor

It's a Winter Warming Spell - But More Snow Ahead for Markets

Good article and I agree with all your logic.

I have slowed down my cautious buying for the long-term which began in October, having been largely in cash since 2006. Increasingly, I fnd myself trading the dips and rallies, abandoning my simple, fundamental philosophy of buy and hold and taking advantage of fluctuations, some of which seem artificial.

Yesterday, Ken Rogoff of Harvard was saying that he thinks there is worse to come, and he expects this to be a four year process. My guess is that he is right, despite all the attempts at positive spin coming out of our various leaders.

Global Markets in Review: Stocks Higher on a Stimulus and a Prayer

You quote David Fuller "A rising stock market would force a reappraisal by bears, leading to a reversal of short positions, while long-only investors put more of their cash back into the stock market."

As a fairly successful long term, and long-only investor, I don't buy stocks on "momentum", or just because the market goes up, or because bears reverse their short positions. I buy stocks based on value and fundamentals like earnings, dividends, business model, and balance sheet quality. I suspect many other long-only investors use similar logic. These fundamentals are getting worse, with no sign of imminent improvement.

Obama Honeymoon Likely To Be Cut Short By Bond Market

Time to encourage work through lower taxes, to encourage savings through high interest rates, and to let "high life and high living" fail!