As a trader, the market action these days are amazingly good. Buy when it goes down, sell when it goes high. Rinse and repeat. As an investor though, the moves must be driving you nuts. The Dow [1] has been stuck in this range for about a month now, and it’s hard to say whether the bulls or the bears will win this tug of war.
On the bull’s side, it’s still the same arguments that recovery is well under way. That it’s never as bad as everyone thought it will be and there are tremendous amounts of cash on the sidelines waiting to be invested.
The bears argue that while the downturn is slowing its pace and shows signs of stabilizing, we are far from a recovery that the rally suggests. They believe that the foreclosure wave is still yet to come and when the fed [2] runs out of gas with all the stimulus, the economy, and thus the stock market, will tumble.
Articles for the Weekend
- For more evidence on the bear case, note that the Case Shiller index fell at a record pace [3].
- Of course, if you are an oblivious investor, you can just ignore the noise. However, you still need to be honest with your expectations of the long term market returns [4].
- Or if you can get a 49,250% return [5], you probably don’t need to worry about how the market does as a whole.
- Now that GMAC’s banking division changed name, Bank [6] Savings Review did a review of the new offerings, Ally Bank [7].
- Lastly, whatever you do, you should always save money on your wedding [8]. Here’s how.