Is anyone else thinking that this house of cards is coming down very soon?
I am considering getting rid of all my stocks this week, and moving into money market or bonds for a while. Not expecting to make much at all doing that.
If I move into bonds, I have the option to get back into stocks without penalty when I believe the market has bottomed out.
If anyone has other ideas, I'd like to hear them!
This might be an interesting read for you:
http://www.mauldineconomics.com/outsidethebox/2013-investment-themes The Grand Disconnect
In our October 2012 Insight, we analyzed in depth the Grand Disconnect between the economies around the world, which are growing anemically at best, and investors who couldn�t care less as long as central banks are shoveling liquidity out their doors. �Don�t fight the Fed� is the rallying cry, especially among congenital equity bulls. And in 2012, at least the latter part, they got their wishes. Virtually every major stock market rose � in the U.S., U.K., the Continent and Japan, in China, Australia, Canada and even woeful Greece.
Nevertheless, the Grand Disconnect between sluggish global economies and robust equities, driven by never-ending monetary and fiscal stimuli, is profoundly unhealthy � and a reconnection is inevitable. Of course, there is that slim, remote, inconsequential, trivial probability that our forecast of global deleveraging, of continuing global economic weakness and of recession is dead wrong, and that all the government stimuli and other forces will revive economies enough to justify current investor enthusiasm. We doubt it, however.
I too am getting ready to shift most of our holdings out of stocks. It is just a matter of when.
