Written By: Tom Hankes | Posted: Wednesday, August 3rd, 2011
I've been waving red flags at you for many months now about pending market downturns. Terrified readers calling for advice are scarce; the Maytag repairman gets more calls than I do; investors are very complacent. Stocks rose from March 2009 and continued into 2011. Nobody's worried- yet.
The firms and magazines which sell stocks & mutual funds try to induce investors to buy with statements such as "Stocks are cheap!", "Valuations are ridiculously low", "I've never seen a better time to buy", "10 stocks to buy now"; you get the picture. Curiously, the message coming from Wall Street always seems to be the same in any market environment and that message is: "It's a great time to buy". Sometimes they're right and sometimes they're not. If that advice comes in a bull market, nobody notices; if you take the advice and run with it at the wrong time, you could be looking at a big financial haircut. The pleading to buy becomes more shrill when the market advances and as optimism climbs.
Sign into your account to read the rest of this article. »