Saturday, November 6, 2010

Market Timing Signal 11/06/2010

The markets are now trading near their 11 year highs as of Friday. Market conditions are ripe for a dip in the market. The market may not drop next week but it is my belief that it will trade lower at some time over the next three months than it is trading at this time. The Federal Reserve is beginning to print money. This could lead to inflation which could really kill this recovery. Don’t get me wrong I think the market has room to run up and will for some time as conditions are still bullish. At this point I am taking profits and will wait for the next dip to buy back into the market. Over the past two years I was of the opinion that US small caps were the best asset class and my favorite fund Royce Low Price Stock fund RYLPX has done very well. When the next buying opportunity strikes I will make my recommendations at that time.

1 comment:

  1. I'm with you. I think 2011 is either going to be flat or there will be a dip.