Everyone else can invest in this market, I'll wait for a real economy to Invest in...
Seeking Alpha Analyst Since 2010
The current valuations coupled with the massive government intervention make the current market siuation quite dangerous. People keep buying stocks because there are no attractive alternatives. However, few people are willing to sit on cash because they are too worried about missing the next move up. They are approaching the situation the wrong way; They should be much more worried about losing tons of principle instead of capturing a few more percent of upside. With cheap dollars sloshing around, the government can claim growth or whatever it wants. Once QE2 ends, we shall see what this market is truly made of. When interest rates, which they inevitably must do, there will be much better buying oppurtunities out there. Though some may see holding cash as a hinderance, it is absolutely necessary during times when investment choices are terrible. Everyone should always remember, Rule #1: Never Lose Money. Most people won't follow this rule and will chase gains, only to be let down when prices begin to reflect the true state of the non-manipulated economy.
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