StockTiming.com posted this plot of the Russell 2000 Index, an index of smaller company (small-cap) stocks. Nominally, the best it has ever been, too.
Funny thing, that. If you look at how the market has been behaving over the last 19 years, it has been displaying a discomforting pattern: higher highs, yes, but lower lows, too.
If you don't get what this 19 year chart of the DOW is saying, do a search on "expanding wedge technical analysis".The short version is that it indicates a snap back is brewing - see points labeled 1 and 2. When it snapped back before, it snapped viciously, and the expanding wedge indicates a correction now would be to the range of Dow 6000. The most dangerous time in a market is when everyone is saying it's good. The old saying is that the time to buy is when there's blood in the streets and everyone else is selling desperately; the time to sell is when everyone thinks it's sunshine, lollipops and rainbows forever.
Dow 6000 would put blood in the streets.
Wow! We haven't seen these kind of records since 1929...ReplyDelete
Time to switch my 401(k)'s from "Stock Market" to "Fixed Yield"!ReplyDelete
Any recommendations for books or sites to read about relatively safe investing?
Any thoughts on where to (relatively) safely store value?
Sorry for the delay in answering this. It's a deceptively hard question. Please remember, I'm some random internet dude with a blog. I'm absolutely not a financial wiz.Delete
This old article is a summary of how I look at things. Note that the link to the Mogambo Guru is not good, but there's one in my blog roll just to the right. He has not written in a long time, but it's still fun reading.
There's a Part 2 to that, and lots more spaced through the blog.
That's a start. Feel free to go to email if you want to chat. Address in the right side bar.