The stock market popped back higher today recovering some 2/3 of yesterday’s big drop. This type of choppy action is indicative of a coming selloff. After all, they do say to sell in May and go away. We are a few months early, but I don’t think stocks will hold the line for much longer. Sure, the agony of shorting a sideways tape is excrutiating so holding cash and waiting on the sidelines for a major breakdown is likely advisable.
All in all, 90% of financial advisors will tell you to buy stocks here — which is why the other 10% are the ones you should be listening to! The business world is filled with moronic advisors telling people to do the oppossite of what makes perfect intuitive street sense. In this case, stocks are up 30-40% from their summer lows and it’s an obvious time to sell and not to buy equities. Of course, last summer everyone hated stocks and talked about the risks while today everyone is talking about recovery and corporate profits. The same BS just a different day!
